Sports Arbitration and Legal Disputes
Sports Arbitration and Legal Disputes
Facts:
a. The present petition was filed raising the issue relating to the alleged illegal suspension
of Sarita Devi (Respondent No. 5) from participation in the competitions of Amateur
International Boxing Association (AIBA) and the alleged failure of the Respondents 1-3
i.e., Union of India (Department of Sports), the Indian Olympic Association and Boxing
India to challenge the said decision of AIBA.
b. Sarita Devi is a Boxer who represented India in the 17th Asian Games conducted by
AIBA at Incheon, Korea. Alleging discrepancies in the manner of operation of the semi-
final match in which she’d participated and non-compliance of Olympic Charter and its
Statute, Devi along with her coaches was provisionally suspended by AIBA on
21.10.2014.
c. The present petition came to be filed on 05.12.2014 alleging that no guidelines are in
place for settlement of disputes with International Sports Bodies and contending that it is
necessary to ensure that clear guidelines are formulated for dispute settlement within the
sports bodies that come under the jurisdiction of the UoI.
d. A final order came to be passed by the Disciplinary Committee of AIBA placing Devi
under suspension for a period of one year.
Prayer:
The petitioner seeks a direction to the Respondent No. 1/Union of India to take due cognizance
of the Rules and Regulations framed by the Court of Arbitration for Sports (CAS) situated at
Switzerland and to direct the respective Federations and Associations in India to incorporate the
CAS Arbitration clause within their respective rules/regulations/bye-laws.
Issues:
a. Whether BCCI is amenable to writ jurisdiction under article 32 of Constitution?
b. Whether the BCCI had the authority to impose the ban on Jadeja, whether the BCCI had
followed the proper procedures for imposing the ban, and whether the ban was
proportionate to Jadeja's alleged conduct.
Judgement:
a. After having established that the BCCI’s actions come under the ambit of judicial scrutiny
due to the monopoly status of the BCCI in Indian sports, the Supreme Court set aside
the Delhi High Court's decision and upheld Jadeja's ban. The court found that the BCCI
had the authority to impose the ban and had followed the proper procedures in doing so.
b. The Court concluded that BCCI was the sole representative of India as a country at all
levels of cricket in the international arena and selects teams for all representative levels
of cricket at the International level and has been recognized by the Government of India
as the Regulatory Authority for the game of Cricket in India; and when the Government
stands by and lets a body like BCCI assume the prerogative of being a sole
representative of India for cricket by permitting BCCI to choose the team for India for
appearance in events like the World Cup, then it necessarily imbues BCCI with the
public functions at least in or far as the selection of the team to represent India and
India's representation in International Cricket fora and regulation of Cricket in India is
concerned.
c. The Supreme Court reasoned that the BCCI had the authority to impose the ban on
Jadeja because the BCCI was a private body with the power to regulate the game of
cricket in India. The court also found that the BCCI had followed the proper procedures
for imposing the ban, including providing Jadeja with a fair hearing and an opportunity to
respond to the allegations against him.
Conclusion:
a. Overall, the Supreme Court's decision in Ajay Jadeja vs. Union of India reaffirmed the
BCCI's authority to regulate cricket in India and emphasised the importance of protecting
the integrity of the sport, while holding the preliminary writ maintainable.
03. INDIAN FOOTBALL ASSOCIATION, WEST BENGAL AND ORS. VS. MOHUN BAGAN
ATHLETIC CLUB AND ORS.
Facts:
a. The plaintiff is an affiliated Association of the pro forma defendant, All India Football
Federation. The plaintiff conducted football League for the year 1986 and Mohun Bagan
Athletic Club (Def1) and other Clubs participated in it.
b. On 15th July, 1986 Mohun Bagan AC played a league match with Rajasthan Club at its
home ground. In the same match one Mastan Ahmed participated and played for the
Mohun Bagan AC. During the said match the said Mastan Ahmed for committing an
offence was shown "Yellow Card'' by the Referee conducting the said match.
c. The concerned Referee duly submitted a report of the said match to the Indian Football
Association. By the letter dated 16th July, 1986 the Indian Football Association duly
communicated to the Mohun Bagan AC as to the said caution given to its said player by
the Referee.
d. Mohun Bagan Athletic Club played another league match against Port Trust at its home
ground. During the said match the said Mastan Ahmed due to commission of an offence
was also shown 'Yellow Card' by the Referee conducting the said match. The said
match, however, could not be concluded due to heavy downpour and was abandoned
after 65 minutes of play.
e. Mohun Bagan A. C. played its next match against Police AC. The said match was played
by the football players of the Mohun Bagan A.C. including the said Mastan Ahmad and
Mohun Bagan won the said match by two nil.
f. After the play was over the Police A .C. lodged a protest in writing to the Calcutta
Football Sub-Committee of the I.F.A., inter alia, contending that Mohan Bagan A.C.
illegally fielded and/or allowed Mastan Ahmed to play the match between Mohun Bagan
A.C. and Police A.C... It was further contended that Mastan Ahmed was not entitled to
participate in the said Match in view of the 'Yellow Card' shown to him twice in the
matches.
Issue:
Whether the abandoned match should be taken to be a valid match and 'Yellow Card' shown in
that abandoned match should be and/or could be taken into account for the purpose of
suspending the player in question in the subsequent match?
Issue
Whether any illegality attaches to the team selected by the Selection Committee constituted by
the Indian Olympic Association?
Argument of Petitioner
Learned counsel for the petitioner submitted that
a. the petitioners having undergone extensive training under the auspices of the Sports
Authority of India should be sent to the Asian Games at Bangkok to represent India in
the discipline of Kabadi.
b. as per the direction of the learned single Judge of the Andhra Pradesh High Court the
authority should have cleared their names to enable them to travel to Bangkok for
participating in the Asian Games.
c. the decision of the Indian Olympic Association in nominating the Selection Committee at
the eleventh hour is mala fide and is based on extraneous grounds.
Observation of Court
a. The Court commented that the sporting interest of the country was being jeopardised
because of their inter se rivalry. It is because of this controversy that selection of the
team by the Indian Olympic Association was delayed.
b. As per para 10.3 of the Guidelines for Assistance to National Sports Federations issued
in July, 1997 by the Government of India the Selection Committee is to be constituted by
the concerned federation comprising the President, the National Coach and eminent ex-
sport persons. The Government of India is required to appoint an observer for each
discipline who is to be associated with all the activities of the National Federation.
c. Since there was a dispute between the two factions of the fourth respondent which is
affiliated to the Indian Olympic Association, the matter was required to be resolved in
accordance with the Rules and Regulations of the Indian Olympic Association. Rule XIX
(iii) of the Rules and Regulations of the Indian Olympic Association provides for
resolution of the disputes arising within the National Sports
Federations/Associations/State Olympic Associations affiliated to the IOA through
arbitration.
d. According to the said Rule, the dispute is required to be placed by the
Federations/Associations before the IOA for appointment of an arbitrator. On October
19, 1998, in consonance with the said Rule; the IOA appointed Shri B. S. Ojha as the
arbitrator for resolving the disputes between the two factions of the fourth respondent.
e. Since there was a dispute as to whether Vats or Gehlot was the President of the fourth
respondent it was not possible to associate the President of the Federation in the
deliberations of the Selection Committee in accordance with para 10.3 of the Guidelines
for Assistance to National Sports Federations. Therefore, the IOA constituted the
Selection Committee in pursuance of para XlX(iii) of the Indian Olympic Association
Rules without nominating either Gehlot or Vats thereto.
f. The Selection Committee constituted on November 23, 1998 by the Indian Olympic
Association selected the Indian contingent to participate in the 13th Asian Games from
both the factions after judging their performance at the trial. The coach who was
imparting training to the petitioners was also a member of the Selection Committee.
There is no reason to doubt the bona fides of the Selection Committee in selecting the
best sportsmen for the Indian team.
g. The arbitrator after the selection of the team on December 2, 1998 informed the
President of the IOA that he had reached the conclusion that Shri J. S. Gehlot was
legally elected as the President of the fourth respondent in the meeting held at Sawai
Madhopur on September 19, 1997. A copy of the communication was presented in Court
by the learned senior counsel for the IOA. Thus, the team sponsored by Shri Vats
cannot claim to be the team selected according to the Rules.
Judgement
The court held that the selection done by the selection committee is according to the rules of
IOA. There is no reason to doubt the bona fides of the Selection Committee in selecting the best
sportsmen for the Indian team.
05. JOACHIM CARVALHO V UNION OF INDIA AND OTHERS, 2012 INDLAW DEL 4256
Facts:
The Petition was filed in the public interest by the petitioner, who was a former member of the
Indian Hockey team and an olympian, and has a genuine interest in the future of Indian Hockey.
The petition was filed on the ground that hockey players of eminence are being subjected to
threat, and are being prevented from participating in a world class hockey tournament organised
in the country.
The Respondents are:
1. R1: The Union of India through the Ministry of Youth Affairs and Sport
2. R2: Hockey India
3. R3: Indian Olympic Association
4. R4: Indian Hockey Confedration
Timeline:
1. In 2008, due to misgovernance, R3 suspended R4 from its position as a NSF, and
intimate to R4 and al of its state units that R4 was suspended and R3 would form an ad-
hoc committee to manage and administer affairs of R4 till the issues are resolved. In the
same year, R4 filed a WP against the suspension order.
2. In 2009, R2 was registered as a new society, and R1 and R3 both recognized R2. The
ad hoc committee managing R4 was dissolved.
3. In 2010, the Court quashed the suspension of R4 by R1 and R3. R1 issued a letter
clarifying the court’s decision, and stated that though there are two recognized NSFs,
only R2 enjoys the support of FIH.
4. In 2010, R1, in view of this decision, derecognized R2 as NSF.
5. In the interim measures, seeing as how only R2 was recognized by FIH, the SC
permitted R2 and the IOA to finalize women’s hockey team, and take necessary steps to
field them in competitions, and the same was repeated for Men’s and Women’s teams
later on. In the Asian Games held in this period, R2 was given the power to select
teams.
6. In the same year, 2010, R4 launched ‘World Series Hockey” (the relevant event), which
would be the first financially sustaining hockey event in India, and signed contracts with
many Indian players. The agreement provided that players are required to exclusively
perform in that event during its period.
R4 sanctioned the relevant event to be organized with a promotions and event management
company known as Nimbus Communications Ltd. Hockey players (both domestic and
international) entered into contracts with the company for 3 years. In response to this, R2 put
some restrictions on the players to participate in the aforesaid event. Although R2 is
derecognized by R1, FIH still recognizes R2 as a national sports federation. FIH has introduced
new by laws for its own functioning as well as of its member national associations, which were
introduced by R2 as well. R2 hence enacted a code of conduct and provided for disciplinary
actions that can be taken against Indian players who participate in domestic events not
recognized by R2, and R2 has refused to grant authorization to the relevant event. Hence,
players who have signed the contract are faced with the threat of disciplinary action and denial
of opportunity. The petitioner is challenging this conduct.
Contentions by R2:
1. R2 contended that its Code of Conduct is a by product of the Code of Conduct
prescribed by the FIH, and that it has no option but to adhere to them, as otherwise FIH
can bar India from entering international events.
2. Though R1 has derecognized R2, it is still recognized by the FIH, and FIH is the
controlling body of international events, and participating countries have to conform to
the rules made by FIH. Further, having regard to the interim orders passed by the SC,
R2 is to play a dominant and exclusive role as far as international events are concerned.
3. R2 is supposed to ensure that all rules and regulations of FIH are followed, and
therefore it is difficult for players to participate in the concerned events as there is a risk
of being debarred from international competitions.
4. The dates of the concerned events are also clashing with when players are needed for
national representative duty, which included participation in international events and
training and preparation for those events.
Contention by Petitioners/R4:
1. The Laudable object of organising World Series Hockey by R4 and Nimbus
Communications cannot be undermined. Hockey players would make respectful
earnings which has eluded them till now, and this may attract more young talent to the
game. Through this, the event may serve a public purpose.
Order of the Court:
The Court observed that R2 has organized preparatory camps for Olympic Qualifier number 1,
with the first fitness camp to be held from 16th December to 6th Jan. The Second camp, a skill
camp, starts from 16th january. The Court observed that the problem can be resolved if it is
ensured that the event sought to be conducted does not clash with the training schedule of the
players. The Court observed that the series can give a boos to the players as well as the public,
and can serve a public purpose, hence the event should be held. The Court also held that as
the FIH has not been made a party, and the Court does not have any jurisdiction over it, the
matter must be put before it so that calrificaiton can be sought from them. The Court opined that
both training/preparatory camps, as well as the event are very important, and no clash of
schedules should happen.
06. ABRAR QAZI V. STATE OF KARNATAKA
Facts:
a. The petition was filed for quashing of proceedings under charge sheet filed against the
accused. The case was such that K. Prakasha, the Police Inspector, City Crime Branch
(Special Investigating), Bengaluru, while interrogating the cricket players, coaches and
owners of franchises in connection with an ongoing crime came to know about match
fixing of the KPL cricket matches held in between 15th and 31st August of the year 2019
and gave a report of it to the Cubbon Park Police Station.
b. This resulted in FIR being registered and ultimately charge sheet being filed against the
petitioners and some other accused. The contents of charge sheet were that:
i. On 22.8.2019 a match was played between Bengaluru Blasters and Bellary
Tuskers at Chinnaswamy Stadium, Bengaluru. In connection with this match,
accused No. 3, the owner of a team called Belagavi Panthers conspired with
accused No. 1 and 2 and pursuant to the same accused No. 2 conceded 10 runs
in over No. 7. For conceding the runs, accused No. 2 received an advance of
INR. 2.50 lakhs and then after the match was over, he again received INR 5
Lakhs.
ii. During KPL season of the year 2018, accused No. 5 asked accused No. 2 to
come to his residence on 1.9.2018 and told him that his team should lose the
match to be played on 3.9.2018 against Shivamogga team. It is also alleged that
accused No. 5 asked accused No. 1 that his team should lose the match to
Shivamogga Lions in the said match.
iii. On 26.8.2019, match No. 19 was played at Mysuru between Mysuru and Bellary
teams. Accused No. 5 met accused No. 1 in a hotel called 'Southern Star Hotel'
and asked him to play slowly.
iv. Accused No. 4 is a bookie. After the schedule of the matches of the year 2019
was announced, accused No. 4 met accused No. 2 through a witness by name
Nitesh at Bengaluru Airport and entered into conspiracy for match fixing.
Accordingly, on 23.8.2019, when a match was played between Bellary Tuskers
and Shivamogga Lions, accused No. 4 made a whatsapp call to accused No. 2
and instructed him to stop the bowling in the middle itself and offered Rs.
10,00,000/- for doing so.
v. Accused No. 6 is a secretary of Social Club and KSCA member. He, at the
instance of accused No. 3 bore all the expenses of the players of other teams.
c. tldr: Various instances of match-fixing were drawn out)
Issue:
Whether match fixing is a criminal offence under IPC?
Facts:
a. In 1984, Mr. V.C. Shukla was the President of the IOA and Mr. K. Murugan was one of
the 6 joint secretaries. After 4 years (the complete term for a president of IOA), Mr. B.S.
Adityan was elected as president. After his term, in 1990, there was a requisition of 17
members for a special meeting to move a no-confidence motion against Mr. Adityan and
his executive council. This requisition was overruled as invalid by the executive council
and Mr. Adityan called for a general assembly meeting in Madras on 15th June. The 17
members who had moved the requisition summoned a meeting on the same day at New
Delhi.
b. The delhi HC restrained the meeting from happening and appointed a retired Del HC
judge to be an observer for the meeting to be held in Madras. Mr. V.C. Shukla claims to
have been elected at the meeting which was held in Madras. In light of the in-fighting, a
single judge bench of the Madras HC had appointed retired Justice Natarajan as the
interim president of the IOA. This order was challenged in this particular case by Mr. V.C
Shukla and Mr. K. Murugan. The fencing association of India had filed a civil suit and this
is the appeal from there.
Issue:
The issue under consideration was regarding election of members to the executive council of
the Indian Olympic Association.
Arguments:
a. The Fencing Association contended that under the rules the terms of the President and
the Executive Council is four years and in the absence of a clear provision for a vote of
no. confidence, which would curtail the period, there could be no reduction of the period
of office.
b. It was also contended that the entire Executive Council could not be voted out of office
by a motion of no confidence and, therefore, Shri Adityan had rightly overruled the
requisition.
Judgement
Appeals disposed.
Reasoning:
a. The court disposed of these appeals and reiterated the paramount importance that the
functions of the Indian Olympic Association held in the international sphere. Justice
Natarajan who was serving as the interim president of the Executive Council was
advised to remain in such a position until proper elections are held and the matter is
properly resolved.
b. The court expressed disappointment regarding the disagreements regarding leaderships
that had arisen within the association leading to litigation and elaborated that such petty
grievances must not foreshadow the important functions that they undertake.
c. They directed for fresh elections to be held at the earliest possible time and consequent
restoration of healthy working conditions. Hence, the court refrained from applying
provisions of the law to matters pertaining to office-bearers
Analysis:
a. While on the outset this may seem like a neutral and balanced approach taken by the
court, it can also be interpreted as one that is distant and lacking in distinct regulations.
b. Matters relating to in-fighting and personal politics must not adversely affect the process
of recruitment and coaching as the importance of sports must be understood by those
undertaking its proper regulation.
08. MESSRS ZEE TELEFILMS LIMITED AND ANOTHER V UNION OF INDIA AND OTHERS,
AIR 2005 SC 2677
Introduction:
The Judgment brings out various judicial interpretations given to the term “other authorities”
under Article 12 of the Indian Constitution which defines the term “State”. In this case, the
question before the Hon’ble SC was whether the Board of Control for Cricket in India (BCCI)
was State within the ambit of Article 12 of the Constitution.
Facts:
a. The Board of Control for Cricket in India (BCCI) is a Society registered under the Tamil
Nadu Societies Registration Act which is said to be recognized by the Union of India,
Ministry of Youth Affairs and Sports.
b. On 07.08.2004 the Board floated a notice inviting tender for grant of exclusive television
rights for a period of four years. Pursuant to the notice several entertaining groups
including Zee Telefilms Ltd. and ESPN Star Sports gave their offers.
c. The Board accepted the offer of Zee Telefilms after holding several negotiations.
However, this was challenged by ESPN Star Sports before the Bombay High Court
under Article 226 of the Indian Constitution.
d. Later on 21.9.2004, the Board stated that it purported to have cancelled the entire tender
process on the premise that no concluded contract was reached between the parties as
no letter of intent had therefore been issued.
e. Owing to the cancellation of the tender, ESPN Star Sports withdrew its petition from the
Bombay HC. However, Zee Telefilms filed a writ of mandamus under Art.32 of the Indian
Constitution to direct the Board to act as per the terms and conditions of the tender.
They also stated that such a withdrawal of the tender notice by the Board was an
arbitrary act and stands against the principles of Article 14 of the Constitution.
Issue:
Whether the Board of Control for Cricket in India (BCCI) was State within the ambit of Article 12
of the Constitution.
Arguments:
a. BCCI
i. BCCI is not a statutory body but is only registered under the Societies
Registration Act,1860 and hence the Board has the autonomy to handle its
administrative affairs.
ii. Neither does BCCI take any financial assistance form the government nor is it
subjected to any financial control by the Government or its accounts are subject
to the scrutiny of the Government.
iii. It is an accepted fact that, BCCI enjoys monopoly status in the field of Cricket but
the same is not conferred on it by any statute or any order of the Government. It
enjoys that monopoly status only by virtue of its first mover advantage and its
continuance as the solitary player in the field of cricket control. Also, there is no
law which prohibits the coming into existence of any other parallel organisation.
iv. No part of the share capital of the Board is held by the Government.
v. The Board is not under a deep and pervasive State control.
vi. All functions of the Board are not public functions nor are they closely related to
governmental functions.
vii. The Board is not created by transfer of a Government owned corporation. It is an
autonomous body.
viii. Placing reliance on Pradeep Kumar Biswas v. Indian Institute of Chemical
Biology & Ors [2002 5 SCC 111] and Ajay Hasia & Ors v. Khalid Mujib
Sehravardi & Ors [1981 1 SCC 722] the respondents contended that, a body
will be considered as State under Article 12 only if the Government of India has
deep and pervasive control over its administrative affairs, but the minimal amount
of control that the Government has over the Board is just regulatory in nature and
not pervasive.
b. Zee Telefilms
i. As per the Memorandum, Articles of Association, rules and regulations of the
Board the BCCI has extensive powers in selecting the “members to the Indian
national Cricket team”.
ii. The Board is the sole authority for organising major cricketing events in India and
has the disciplinary power over the players/umpires and other officials involved in
the game and sports which being a subject under the control of the States under
Entry 33 of List II of the Seventh Schedule of the Constitution of India, in
substance the Board exercises governmental functions in the area of Cricket.
And this monopoly status is conferred on it by the Government of India.
iii. The Board has the authority to determine whether a player would represent the
country or not. Further, since playing cricket is a profession the Board controls
the fundamental right of a citizen under Article 19 (1) (g) of the Constitution.
iv. Prior approval from the Government of India is a mandate which the Board has to
obtain before sending the players to represent India internationally and also to
host international matches in India.
v. The players wear uniforms that carry the national flag and are treated as sports
ambassadors of India.
vi. The petitioners also pointed out an occasion where the team selected by the
Board was rejected permission to represent India for a match in Pakistan. Hence,
the Government of India has pervasive control over the Board.
vii. The petitioner placed reliance in the case of Secretary, Ministry of Information
& Broadcasting, Government of India Others etc. v. Cricket Association of
Bengal and Others etc [(1995) 2 SCC 161] where the court held that, “a person
desiring to telecast sports events when he is not himself a participant in the
game, does not seek to exercise his right of self-expression. However, the right
to freedom of speech and expression also includes the right to educate, to inform
and to entertain and also the right to be educated, informed and entertained. The
former is the right of the telecaster and the latter that of the viewers. The right to
telecast sporting events will therefore also include the right to educate and inform
the present and the prospective sportsmen interested in the particular game and
also to inform and entertain the lovers of the game. Hence, when a telecaster
desires to telecast a sporting event, it is incorrect to say that the free-speech
element is absent from his right”.
Judgement
BCCI is not a ‘State’ within the meaning of Article 12 of the Constitution of India.
Reasoning
a. The Board of Control for Cricket in India (BCCI) ,a society registered under the
provisions of Tamil Nadu Registration of Societies Act,1975 is not a State within the
meaning of Article 12 of the Constitution of India but it is amenable to the writ jurisdiction
of Article 226 of the Constitution in view of duties and functions performed by BCCI of
public nature. The activities to be performed by the Board are as under:
i. It formulates rules, regulations, norms and standards covering all aspects of the
game.
ii. It has the power to disqualify the players which may at times put an end to the
sporting career of the person.
iii. It spends crores of rupees on building and maintaining infrastructure like the
stadium, running of cricket academics and supporting the State Association.
iv. It frames pension schemes and incurs expenditure on coaches and trainers etc.
v. Collection of admission fees and the telecast and broadcast rights of the matches
are sold by the Board.
b. To these activities, there is tacit approval of the State Government and Government of
India. The State has not made or taken any steps to dilute the autonomy of the Board.
c. The court observed that BCCI, though it enjoyed the monopoly status over the Cricket
control, the state does not give this monopoly, nor does the state protect such monopoly
through any statute. The court also finds that BCCI is financially independent of the
state, nor does the state hold any share in the board. With all these observations, the
court finds no point in dealing with the contention that the respondents violated the
petitioner’s fundamental rights.
d. The majority view held that Board cannot be held to be a State for the purpose of Article
12 . Thus, the Writ filed under article 32 of Constitution is not maintainable. Hence, the
petition is dismissed.
e. The dissenting judgment of Sinha, J. in Zee Telefilms seeks to answer this question from
various perspectives. Whether the said private body could be ‘State’ or not can be
verified by one test as “if allowed to perform the regulatory and controlling functions, or
to discharge positive obligation of public nature or to discharge public duties, which were
otherwise the job of the government.” That being the case, the nature of the function
performed by a private body simpliciter could elevate it to the status of ‘State’, regardless
of the financial, functional and/or administrative control by the Government.
09. ALL INDIA WOMEN'S HOCKEY FEDERATION VS. INDIAN OLYMPIC ASSOCIATION
AND OTHERS,1994 INDLAW DEL 5
TLDR: Factionalism – plaintiff claimed to be head – originally went for arbitration, who favoured
defendant – plaintiff wants injunction on the arbitral award, tries to argue there is no arbitration
clause – for a federation to be registered with the IOC, it needs to have an arbitration clause –
injunction not granted.
Facts:
a. The plaintiff, claiming to be the All India Women’s Hockey Federation, is affiliated with
the Indian Olympic Association. The Constitution of the IOC (its Memorandum of
Association and the Rules and Regulations formed under it) provides that for the
settlement of disputes, all National Sports Federations/Associations/ State Olympic
Associations affiliated to the IOC shall have their disputes resolved by the IOC with their
Members voluntarily surrendering the right of seeking redress in any Court.
b. For the purpose of resolving a dispute referred to the IOC by a Federation, the IOA
Executive Council, on the recommendation of the President of the IOA, shall recommend
nine names to the disputing parties, to select one name that is acceptable to all parties
to act as the Arbitrator, and the proceedings will be completed within a time period given
by the IOA Executive Council.
c. In February 1994, elections for the post of office bearers were held, and there were
some issues with regard to the right to vote of certain members. After the elections were
held, both parties produced different sets of minutes of the meeting, both of which
showed different sets of office bearers as elected.
d. In April, an agreement was entered into between Mrs. Arnavaz Damania and Mrs. Vidya
Stokes, who were representing the two groups, whereby they agreed to resolve their
disputes as per the constitution of the IWHF and/or the IOA by reference to arbitration.
Mrs. Damania did not appear before the appointed arbitrator (defendant 2), and the
arbitrator, perusing the material placed, gave an award in favour of Mrs. Stokes and
found her the duly elected president of IWHF.
e. In June, the instant petition was filed by the plaintiff, challenging the existence and
validity of the arbitration agreement and the award, and praying for an ad interim
injunction to restrain the operation of the award.
Issues Involved:
a. Whether the arbitral award can stand, or whether the injunction order prayed for can be
granted?
Judgement:
a. The plaintiff argued the clause in the IOC Constitution that deals with arbitration of
disputes shall not apply unless there is an arbitration clause in the constitution of the
Federation, and in the absence of such a clause, the dispute could not have been
referred for arbitration. They also argued that the agreement was entered into by Mrs.
Damania alone, and hence does not bind the other contestants of the election, including
the present plaintiff. (argument not answered by court)
b. The Court, examining the first contention, observed that the plaintiff did not bring the
constitution of the federation on record, and further that the provisions of the IOC
Constitution mandatorily obliges the plaintiff Federation to include an arbitration clause in
its constitution, without which the Federation would never have been granted affiliation.
c. Hence, the Court held that since the constitution of the Federation has not been brought
on record, the existence of the arbitration clause in the Constitution of the Federation
can be presumed.
d. The Court further held that even if the plaintiff contends that the award is invalid or
incapable of being enforced, the remedy would be a valid reference to arbitration, and
not disputing the existence and validity of the arbitration agreement and the award.
e. The Court concluded with reference to Batokristo Nandy v Ranadeb Chowdhury,
which had held that election of officials of an association is an internal matter, and the
courts will normally have no jurisdiction to interfere in such matters. Individual members
or a group of members of such an association cannot bring an action in the name of the
association challenging a mere irregular act of a manager when such an act can be
ratified by a majority of the members and the majority is willing to do so. The Court can
only interfere when the impugned act is tainted by fraud and the evil doers themselves
are in majority, or when a breach of a rule is not a mere irregularity but is substantial, or
other such serious wrong has been committed.
f. The Court observed that granting injunction is up to the discretion of the Court, and it
may not be granted merely because it is lawful to do so.
Conclusion:
The Court refused to grant the injunction prayed for by the plaintiff, and rejected the plaint.
10. MAHARASHTRA ARCHERY ASSOCIATION V RAHUL MEHRA AND OTHERS, 2019
INDLAW SC 492
TLDR: Administrator appointed to conduct elections made amendments to the Constitution over
and above what was ordered by the Court – these changes led to certain representatives
ineligible to stand for elections – amendments challenged – Court held amendments over and
above the ones mentioned in the Court order are invalid.
Facts:
a. Respondent 1 had filed a writ before the Delhi HC regarding issues of functioning in the
Archery Association of India (AAI). The HC had passed an order appointing an
Administrator to supervise the affairs of the AAI, till its Constitution was amended and
elections were held as per the terms of an order passed by the HC.
b. The order of the HC appointing the Administrator was challenged through separate
petitions filed by the Maharashtra Archery Association, AAI, and the Kerala State
Archery Association.
c. During the hearing of these petitions, the appellant submitted that the Constitution of the
AAI had been amended in accordance with the National Sports Development Code of
India, 2011. In response to this, the Union of India filed an affidavit which pointed out
certain deviations in the Constitution of the AAI, and said that it was not yet in
consonance with the Sports Code 2011.
d. The Court then directed that the amendments required be incorporated, and that after
the Constitution comes into force, elections should be held under the Administrator
appointed by the HC.
e. The Court further ordered that the Constitution so amended had to be filed before the
Court, and that the Administrator was at liberty to move the Court in case he had any
reservations with regard to the Constitution.
f. Later, the Administrator filed before the Court a new Constitution (“Administrator’s
Constitution”) which contained several new amendments that were not mentioned within
the order of the Court. The Administrator also had not filed any formal application before
the Court seeking any liberty to introduce any such new amendments.
g. The appellants also put forth that the Administrator’s Constitution was not even
circulated to the constituent members until it came to be filed in the Court, and that it
was notified through an email to the members-State Associations along with a notice for
elections for office bearers of the AAI.
h. The AAI moved the Supreme Court asking for a direction that elections be conducted as
per the Court approved Constitution instead of the Administrator’s Constitution. The
Court however did not restrict the conduct of the elections during the hearing of the
petition filed by the AAI, and the same was conducted as per the Administrator’s
Constitution.
i. Due to this, the representatives of the Appellant Association could not contest the
elections as there were certain restrictions in the Administrator’s Constitution.
j. Objections against the Administrator’s Constitution were also filed by the Union of India
and the Indian Olympic Association, claiming that the same was in violation of the Sports
Code.
Issues Involved:
Whether the election held as per the Administrator’s Constitution was valid?
Conclusion: The Court held that the Constitution of the AAI would be amended only to the
extent mentioned within the relevant order, and the other amendments introduced in the
Administrator’s Constitution would be null and void. The Court allowed the elected body to
continue as a Committee of Administrators until a new elected body takes over, with elections to
be conducted by the Committee of Administrators within a fixed time period after this order.
11. OMKAR NATH PAJNU AND OTHERS V J&K CRICKET ASSOCIATION AND OTHERS,
2017 INDLAW JK 809
TLDR: JKCA held elections for positions of office bearers of the Association after the judgement
of the Supreme Court regarding eligibility of individuals to be elected to such positions was
released – the elected members included 4 individuals who were disqualified by virtue of them
failing the eligibility criteria mentioned in the judgement – this Association then appointed an
Ombudsman to resolve disputes between constituent members of the Association – this
appointment was challenged – Court held that this Association, comprised of ineligible
members, could not validly appoint this Ombudsman.
Facts:
a. Jammu and Kashmir Cricket Association (JKCA) was entangled in multiple litigations,
when the Supreme Court decision in the case of BCCI vs. Cricket Association of
Bihar & Ors. constituted the Justice Lodha Committee to recommend reforms. The
recommendations of the Committee were accepted by the SC by judgement dated
18.07.2016, and these also provided for disqualification of office bearers of BCCI and
affiliated associations who did not meet the norms set by the Committee. The SC also
gave 4 to 6 months for transition from the old system to the new system.
b. The JKCA is governed by the Rules of the Jammu and Kashmir Cricket Association
formulated in 1957. It envisages that the Association will consist of Representative
Members from affiliated clubs, along with other categories of Members, and that the
management of the Association will be done by a Working Committee that shall be
selected from the members of the Association. The Working Committee shall then elect
President, Chairman and other office bearers from within its members.
c. After the Lodha Committee recommendations were accepted by the SC in order dated
18.07.2016, elections for the office bearers of JKCA were held on 19.07.2016 even
though this should not have been done. As a result of these elections, 4 persons, i.e. the
Chairman, President, General Secretary and Treasurer were elected who had incurred
disqualification under the recommendations of the Lodha Committee accepted by the
SC.
d. Following this, this Association, with these office bearers, appointed an Ombudsman to
resolve disputes of the clubs affiliated with the Association. The appointment of the
Ombudsman was challenged in this instant case. The Single Judge bench hearing the
case had held that the appointment was invalid, and against that decision, the instant
appeal had been filed.
Issue Involved:
Whether the Ombudsman was validly appointed by the members of the Association?
Conclusion:
The Court issued directions for the appointment of Committee of Administrators, Ombudsman
for resolving disputes, and other critical office bearers, and dismissed the appeal.
12. DEPARTMENT OF SPORTS, MINISTRY OF YOUTH AFFAIRS AND SPORTS, NEW
DELHI VS. ATHLETICS FEDERATION OF INDIA, NEW DELHI, 2018 INDLAW CCI 43
TLDR: Question is whether AFI is abusing dominant position – DG report and Commission
agreed that AFI has dominant position – relevant market is the “provision of services relating to
organisation of athletics/athletic activities in India” – demand and supply side substitutability
absent – DG report said abuse is there, as minutes of AGM in April, 2015 showed abuse –
Commission said that decision was never implemented, the decision was later modified in
subsequent AGM, restriction and payment required only when name/services of AFI is used,
which is reasonable, so no abuse.
Issue:
Whether the AFI has abused its dominant position in contravention of the provisions of Section
4 of the Competition Act?
Conclusion: The Commission held that even though AFI has a dominant position in the
relevant market, the alleged conduct of AFI is not abusive, as no case of contravention of
provisions of Section 4 of the Competition Act have been made out against them.
13. HEMANT SHARMA AND OTHERS VS. ALL INDIA CHESS FEDERATION, THROUGH
ITS SECRETARY, CHENNAI, 2018 INDLAW CCI 45
TLDR: Is AICF abusing dominance was the question – it made chess players sign undertaking
that they would not play with unauthorised tournaments, even though they do not have
guidelines for authorising tournaments, the punishments for players are very harsh (monetary +
loss in FIDE rankings + ban) – relevant market shown to be the “market for organisation of
professional chess events in India’ and ‘the market for services of chess players in India’ – has
dominant position as it is NSF and regulates chess in India while players have no bargaining
power – abuses this position as it imposes unreasonable restriction with no connection to
protect the integrity of the sport
DG Investigation:
a. The DG investigation concluded that the AICF was an enterprise under Section 2(h) of
the Act, as it provides a service to chess players and those interested in conducting
chess tournaments.
b. Relevant Market: Looking at the relevant market, the DG investigation found that on the
demand side, chess players cannot shift to any other sport body conducting any other
sport in response to a change in supply side conditions, and on the supply side,
conducting and governing chess events in India constituted a unique and separate
service that is not substitutable or interchangeable with other sports. Hence the relevant
market was seen as “the market for conducting and governing domestic and
international chess events for men and women and the underlying economic activities in
India”.
c. Abuse of Market Dominance: Examining the dominance of AICF, the report found that
the Ministry of Youth Affairs and Sport (MYAS) has recognized AICF as a NSF, and it is
the only national level chess federation affiliated to FIDE, which makes AICF the sole
authority to govern chess in India, allowing it to enjoy a position of strength and act
independently of market forces. The DG Investigation also found that AICF abused this
dominant position as it was
i. restricting participation in unauthorised as well as authorised events (as players
have to declare that they will not play unauthorised tournaments), making
organisation of events commercially unviable for competing organisers such as
Chess Association of India (CAI),
ii. removing ELO rankings of players for participating in unauthorised events,
iii. not implementing the Long Term Development Plan prepared by NSFs as per
Code created by the MYAS in 2011 and
iv. allowing entries other than merit, under special/donor entries and collecting
higher amount of fees from them,
v. misusing the discretion given to the Secretary in nominating players and
vi. not maintaining proper records.
d. The DG concluded that practices and various clauses in the Constitution and By Laws of
the AICF have caused harm to the competition as per the provisions of 19(3) of the Act
such as creating entry barriers, driving out the competition and foreclosure of
competition, and as such, this conduct violates Section 3 of the Act.
Issues:
Whether AICF has abused its dominant position?
Reasoning:
a. Is AICF an Enterprise?
i. The Commission examined the report of the DG as well as the contentions put
forth by AICF.
ii. AICF contended that it is not an enterprise as they do not earn income from sale
of tickets, television rights, or advertisements, and that mere collection of
registration fees is not an economic activity and does not generate income for
AICF, as that fee is utilized for maintenance of the database and preparation of
the rank list, etc.
iii. However, the Commission concluded that organisation of chess events itself is
an economic activity, and falls within the ambit of services covered under Section
2(h) of the Act, and the very fact that AICF has a mandate to undertake the
economic activity of organising chess events under its Constitution makes it an
enterprises. The Commission also held that a person would be an enterprise
even if the activities mentioned are carried out directly or indirectly through units,
divisions or subsidiaries.
b. Relevant Market
i. While trying to delineate the relevant market, the Commission observed that the
unique characteristics of chess as a sport ensure that other sports or forms of
entertainment do not constrain chess in any manner. The AICF requires the
services of the chess players for organising chess events, making it a consumer
of chess players. Further, the market for assessment of restrictions on chess
players and organisations like CAI, and actions taken such as debarment and
removal of ELO would be the market for organisation of professional chess
tournaments and the market for services of chess players. Wrt the geographic
market, since the AICF is the NSF, it governs chess through rules and
regulations throughout India. The conditions of competition are homogenous
throughout the nation.
ii. Hence, the relevant market to assess the restrictions on chess players will be the
“market for organisation of professional chess events in India’ and ‘the market for
services of chess players in India’.
c. Dominant Position
i. AICF contended that it is governed by the National Sports Code that has a policy
of ‘One Sport One Body’ and its activities cannot be subjected to Section 4 of the
Act as it performs only regulatory functions.
ii. The Commission however, observed that AICF is the only national chess
federation in India affiliated to FIDE, and has the authority to select and field
Indian chess teams for international tournaments and conduct national and
international chess events in India. The regulatory powers enjoyed by AICF
include sanctioning/disapproving proposals for organising chess events and
subjecting players to disciplinary action in case of participation in unauthorised
events. The rules contained in AICF Constitution and Bye-Laws also see that
AICF has control over professional chess players in India, who have no
bargaining power.
iii. Based on these, the Commission concluded that AICF has a dominant position in
both the relevant markets.
Conclusion:
The Commission found that AICF was abusing its dominant position in the relevant market, and
gave orders to cease such conduct, lay down process and parameters governing authorisation
of chess tournaments, and a monetary penalty amounting to 2% of the relevant turnover
(revenue of AICF from the market for organisation of professional chess tournaments, as
reported under Tournament and Fees Receipts in the audited financial statements of AICF) for
the preceding 3 years.
LEGAL STATUS OF BCCI AS INSTRUMENTALITY OF STATE UNDER ARTICLE 12 OF THE
INDIAN CONSTITUTION – Dr. M. Suresh Benjamin and Sanu Rani Paul
Introduction
a. Globalisation of sports has shifted the focus of legal regulation increasingly onto certain
international and national sports federations which controls and governs international
sport. They have their own rulebooks and constitutions, often catered to their own
convenience. They take decisions that can have profound effects on the careers of
players and that have important economic consequences. They are autonomous
organisations and are independent of national governments.
BCCI
a. “BCCI is an unruly horse wielding enormous power economically as well as politically
and enjoys monopoly status in every sense.”
b. The major breakthrough in cricket in India was the opening up of market and
liberalisation policies of the Narasimha Rao government in 1991. It eventually put an end
to the monopoly of state-run Doordarshan in broadcasting the game.
Conclusion
a. The classification of BCCI as a state has various potential implications of this
classification, including increased transparency and accountability in the BCCI's
operations and the possibility of legal challenges to its policies and decisions.
b. Further, the BCCI could benefit from greater government oversight and regulation;
subjecting the private actors to constitutional limits by expanding the definition of State
under Article 12.
c. Finally, the authors call for further research and analysis on the issue of sports
governance in India.
WHAT IS SPORTS LAW by Timothy Davis
“Sports Law” or “Sports and the Law”:
There exist three different positions taken by those engaged in the debate concerning whether
sports law constitutes a substantive area or law:
a. The Traditional View: “Sports Law” as a separately identifiable body of law does not exist
and the possibility of such existence is extremely remote.
i. sports law represents nothing more than an amalgamation of various substantive
areas of the law that are relevant in the sports context; alt. “Law as applied to the
sports industry”
ii. Sports law simply entails the application of basic legal precepts arising from
various laws such as contract law, admin law, ip law etc to situations that sports,
as a form of entertainment, warrants.
b. The Moderate Position: “Sports Law” may develop into a field of law; although sports law
does not presently represent a separately identifiable substantive area of law, recent
developments suggest that in the near future it will warrant such recognition
i. Among other critics, Prof Kenneth Shropshire acknowledges that developments,
such as state and federal legislation impacting sports (for example, state statutes
regulating sports agents) suggest a "growing sports-only corpus" of law.
However, this is yet to reach a point of maturation enough to be recognised as a
unique substantive organ of the law.
ii. In a (groundbreaking) treatise authored by John Weistart and Cym Lowell – The
Law of Sports – the authors identify many areas in which sports-related problems
require specially focused analysis. Additionally, they noted that there exist factual
peculiarities in sports that require the unique application of generally applicable
legal doctrine and thus produce results that would not occur in other contexts; for
eg: the general law on sex-based discrimination does not cover the significant
differences in the revenue generating potentials of traditional men’s and women’s
sports, thereby necessitating separate and unconventional judicial reasoning.
c. “Sports Law”: a body of law presently exists that can appropriately be designated as
sports law.
i. Supporters, such as Prof Simon Gardiner rely on the growing body of cases and
laws specific to the sports industry, to embrace the emergence of a new body of
law known as sports law.
ii. According to Professor Carter, "the field of sports law has moved beyond the
traditional antitrust and labour law boundaries into sports representation and
legal ethics, sports and corporate structure, sports and disability, sports and race,
sports and gender, sports and taxation, international issues in sports law and
numerous other permutations."'
Sport as an Industry
a. Financial stats:
i. worth more than 3% of world trade and 3.7% of the combined GNP of the current
28 Member States of the European Union (EU), which comprises 508 million
people
ii. 5.4% of the EU labour force, that is, some 15 million people, are now engaged in
sport.
iii. EFA PL sold their rights to their live matches for the three seasons beginning in
2016 for a record sum of £5.136. The sale of additional rights, including other
platforms, has increased this sum to £8.3 billion!
iv. On 9 June 2016, the German Bundesliga set a new record for the sale of TV
rights in a deal worth E4.64bn over four seasons: 2017/18 - 2020/21.
b. Stats that prove that sports, as an industry, is experiencing tremendous growth:
i. the world-record fee of almost f200 million paid during the 2017 'Summer
Transfer Window' for the transfer of the Brazilian forward Neymar Jr from FC
Barcelona to Paris Saint-Germain FC.
c. One of the pernicious effects of so much money circulating in sport has been the need,
on the part of a number of athletes, to win at all costs. This obsession has given rise to
an increasing use of banned performance-enhancing drugs - an ever-present scourge of
sport - and other forms of cheating.
d. The author states that as a consequence of all of the aforementioned, there now exists a
need for legal regulation of the sport, to benefit its various stakeholders - and this body
of law is called ‘Lex Sportiva.’
Lex Sportiva
a. Prof. Steve Cornelius: For a while, there was a significant debate around the question
whether one should speak of sports law, or whether it should rather be sport and the
law. The argument was that sports law was no more than various other fields of law
applied in the context of sport
b. It has long since it become clear that sport poses various unique questions to the law
and that various aspects of sport are regulated in ways that have no equivalent in other
spheres of business and governance. For instance, safeguarding the integrity of sport
against practices, such as doping and match-fixing, hardly have any clear parallels
outside the world of sport. In addition, the International Olympic Committee enjoys a
special legal status, similar to that enjoyed by international organisations in public
international law. As a result, it is now generally accepted that sports law is a distinct
subject worthy of recognition, study and research in its own right.
c. At the EU level, the term ‘specificity of sport’ (also referred to as ‘sporting exception’) has
been coined and is considered in various Commission rulings and Court decisions.
d. Court of Arbitration
i. The Court of Arbitration for Sport (CAS) has also been contributing to a discrete
body of sports law during its 33 years of operations, as a result of the substantial
number of cases, covering a wide range of sports-related legal issues that the
CAS has handled to date. It currently registers some 600 cases a year.
ii. Since the end of 2002, all Olympic International Federations and several non-
Olympic Federations have recognised the jurisdiction of the CAS.
iii. Although CAS arbitrators are not generally obliged to follow earlier decisions and
obey the sacred Common Law principle of 'stare decisis' (binding legal
precedent), in the interests of comity and legal certainty, they usually do so. 19
As a result of this practice, a very useful body of sports law is steadily being built
up.