The activities of the Board of Control for Cricket in India (BCCI) are commercial in form and can be termed as a market for the needs of attracting the provisions of the Employees State Insurance Act, the Top Court has ruled.
The Apex court said the ESI Act is a welfare legislation enacted by the Union and a narrow meaning shouldn’t be attached to the words used in the law as it asks to insure the employees of covered establishments against different risks to their life, health, and well-being and places the charge upon the employer.
The Bench comprising Justices MR Shah and Justice PS Narasimha said no mistakes had been committed by the ESI Court and/or the high court in treating and considering the BCCI as a “market” for applicability of the ESI Act.
“Considering the systematic activities being carried out by the BCCI namely, selling of tickets of cricket matches; providing entertainment; rendering the services for a price; receiving the income from international tours and the income from the Indian Premier League, the ESI Court, as well as the High Court, have rightly concluded that the BCCI is carrying out systematic economic commercial activities and, therefore, the BCCI can be said to be ‘shop’ for the purposes of attracting the provisions of ESI Act,” the bench said.
Bombay High Court had noted that the BCCI is covered within the meaning of “market” as per a notification dated 18th September, 1978, issued by the Maharashtra government under the provisions of Section 1(5) of the Employees State Insurance Act, 1948.