New Delhi: The Supreme Court on Wednesday clarified that as the Board of Control for Cricket in India i.e. BCCI is a business entity, it is appropriate to refer to the BCCI as a ‘shop’ in the context of the Employee Insurance (ESI) scheme.
The ESI Act is framed by the Centre, and the meaning of the words contained therein cannot be narrowed. Employers are expected to meet the health, insurance and other schemes of the employees of the establishments falling under this. The High Court has not committed any mistake by calling BCCI a ‘shop’ during its hearing. M. R. Shah and Nya. P. S. Narasimha’s bench explained.
As per notification dated 18th September, 1978 by Government of Maharashtra State Employees Insurance Rules are also applicable to BCCI. Therefore, the Bombay High Court had said in an order that it would be appropriate to call BCCI a shop. Challenging this, the board approached the Supreme Court. In the affidavit submitted by the board, it had stated that its main objective is to promote cricket and provide a platform to the players and said that the BCCI shop does not fall under the ambit of the ESI rules.
ESI rules also applicable
– BCCI sells tickets for cricket matches, provides entertainment, charges for services. Earns huge income from international tours and hosting IPL.
– The bench opined that it is correct to call the shop as per the notification dated 18th September 1978 to BCCI which conducts financial and commercial affairs. The bench said that the ESI rules are also applicable to BCCI.