Bombay HC: BCCI Engages in Commercial Activities, Hence Covered Under ESI Act 

Bombay High court Law Insider

Debangana Ray

Published on July 1, 2022 at 18:54 IST

The Board of Control for Cricket in India (BCCI) is covered under the employees state insurance act and is liable to pay the employer’s contribution to the ESI corporation, an autonomous body under the Union Government which looks after the welfare of the employees of any company.

The body provides medical care, paying compensation in cases of ilnesses, injuries etc and several benefits for employees in the organised sector.

A Single Bench of Justice Bharati Dangre upheld an order passed earlier this year by an ESI court in the city, which had held that the BCCI can be categorised as a “shop” under the Mumbai Shop and Establishment Act and would, therefore, be covered by the ESI Act.

The BCCI had approached the Bombay High Court challenging this order.

However, the court said that “The board is admittedly involved in entertaining and carrying out systematic commercial activity and is engaged in providing services to the public at large by engaging its employees, organising events, promoting cricket as a source of entertainment and thereby collecting funds,”

It further said that the BCCI was involved in “systematic commercial profit-making activity”, and was therefore, covered under the ESI Act, which recognises an insured employee’s right to medical care as his or her fundamental right.

“I have no hesitancy to hold that the nature of activities conducted by the Board are commercial and hence, covered under the term ‘shop’ for the purpose of the ESI Act and notification issued thereunder,” Justice Dangre said, while dismissing the BCCI’s appeal.

However, the High Court has stayed the implementation of its order for six weeks to allow the BCCI to file an appeal.

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