Full Judgment Text
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CASE NO.:
Appeal (civil) 237-239 of 2005
PETITIONER:
Board of Control for Cricket, India & Anr.
RESPONDENT:
Netaji Cricket Club & Ors.
DATE OF JUDGMENT: 10/01/2005
BENCH:
N. Santosh Hegde & S.B. Sinha
JUDGMENT:
J U D G M E N T
(Arising out of SLP (C) Nos. 21820-21822 of 2004)
With CIVIL APPEAL NO. OF 2005
(@ SLP (C) No. 23351 of 2004)
CIVIL APPEAL NOs. OF 2005
(@ SLP (C) Nos. 23837-23838 of 2004)
CIVIL APPEAL NOs. OF 2005
(@ SLP (C) Nos. 22361-22363 of 2004)
S.B. SINHA, J :
Leave granted in all SLPs.
These appeals involving common questions of law and fact were
taken up for hearing together and are being disposed of by this common
judgment.
The basic fact of the matter is not in dispute.
Netaji Cricket Club (Netaji) is a member of Tamil Nadu Cricket
Association. Tamil Nadu Cricket Association is admittedly a member of the
Board of Control for Cricket in India (Board). Netaji filed a suit for
declaration and injunction in the Madras High Court which was marked as
Civil Suit No. 765 of 2004 inter alia for the following reliefs:
"1. A declaration to declare that the eligible
candidates who are entitled to contest for the post
of President in the BCCI proposed a member of
the North Zone should be permitted to contest in
the election process and also be entitled to be
elected as the President and act as such for the
term in the election to be conducted in the Annual
General Meeting on 29th and 30th of September,
2004 at Hotel Taj Bengal, Kolkata.
2. For a permanent injunction restraining the
defendants, their agents, servants and men from in
any manner seeking to disqualify any eligible
person or persons proposed by any member of the
North Zone, as representative from the said zone
representing a member in the North zone as their
candidate for the Presidential Post of BCCI by
virtue of such candidate not being a resident
member within the zone not being a member of the
said association giving him the representation."
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In the said suit, an apprehension was expressed that the Board in its
ensuing election of office bearers would not permit some candidates to
contest on the ground of residence.
In the said suit, two interim applications bearing No. OA No. 803 of
2004 and OA No. 804 of 2004 were filed. Whereas in OA No. 803 of 2004
a prayer was made to the effect that the Annual General Meeting (AGM) be
conducted under the Chairmanship of a retired Supreme Court Judge with
absolute power to scrutinize and approve the list of authorized
representatives from member associations eligible to vote in the AGM; in
OA No. 804 of 2004 a prayer for injunction was made for restraining the
Appellants herein from interfering with the proposal of any representative of
any member of the North Zone for the post of President on the basis of
residential qualification.
By an interim order dated 28.9.2004, a learned Single Judge of the
said High Court appointed Shri S. Mohan, a former Judge of this Court as a
Commissioner to conduct elections and to take necessary decision with
regard to qualification, nomination and conduct of elections. The third
respondent was further prohibited from disqualifying any member of BCCI
and prevent them from voting.
The Board aggrieved by and dissatisfied with the said order dated
28.9.2004 preferred a Letters Patent Appeal before the Division Bench of the
Madras High Court. Before the said Division Bench, an undertaking was
given by the learned Senior Counsel on behalf of the Board that the Board
would not disqualify any candidate for the post of President on the ground of
residence. Pursuant to or in furtherance of the said undertaking a statement
was made by the learned counsel appearing on behalf of ’Netaji’ that the
apprehension of the plaintiff/ first respondent which formed the basis for
moving the Court by filing a suit for the relief as stated above is vanished in
air. With the consent of the parties, the suit itself was withdrawn and both
the appeal and the suit were disposed of in the following terms:
"(i) We are of the view that the impugned order
need not be in existence and hence, the same is set
aside;
(ii) the elections scheduled on 29.9.2004 at 10.30
a.m. shall be continued by the first defendant/
appellant \026 Body strictly in accordance with the
provisions of their Constitution and the rules or
bye-laws framed thereunder;
(iii) the counsel on record for the first defendant/
appellant herein made an endorsement to the effect
that "the appellant shall not disqualify any
candidate for the post of President on the ground
of residence". The said undertaking has been
given by the learned Senior Counsel, Mr. T.R.
Rajagopal across the bar and the same is recorded
and we direct that the undertaking should be given
effect to in letter and spirit without any deviation;
(iv) the first defendant/ appellant herein is hereby
directed to receive Hon’ble Mr. Justice M. (sic)
Mohan, who was appointed as Commissioner
under the order on appeal and offer due respect
and all comforts during his stay at Kolkata without
giving any room for the learned Judge to feel
embarrassed and the learned Judge should be
treated with high dignity. The first defendant/
appellant herein shall pay a further sum of Rs.
1,00,000/- (Rupees one lakh only) as final
remuneration to Hon’ble Mr. Justice S. Mohan,
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apart from other incidental expenses; and
(v) in default of conditions (ii) and (iii), referred to
above, if any party who is a member of the first
defendant/ appellant \026 Board is aggrieved, he is at
liberty to workout his relief in appropriate
proceedings before the competent court."
It appears that another suit was filed in the Court of VII Assistant City
Civil Court, Chennai by Bharathi Cricket Club against the Appellants herein
as also the Tamil Nadu Cricket Association praying for the following reliefs:
"a) Declaration that the resolution in so far as it
relates to Item 1 passed at the Special General
Meeting of the First Defendant held on 12.9.2004
at 11.30 a.m. at the Taj Coromandel,
Nungambakkam High Road, Chennai, electing the
Third Defendant as the Patron in Chief as null and
void.
b) Order of Permanent Injunction restraining the
First Defendant from passing the resolution in
relation to Item 1(b) and Item No. 13 of the
Agenda of the Notice dated 27.08.2004 issued by
the First Defendant for convening the Annual
General Meeting on 29th & 30th September, 2004 at
Hotel Taj Bengal or at any other place,
consequently restraining the First Defendant from
passing any resolution in any manner whatsoever
having the effect of nominating the Third
Defendant as Patron-in-Chief thereby empowering
the Third Defendant to attend the International
Cricket Council and Asian Cricket Council
Meetings representing the First Defendant."
In the said suit, a prayer was made by the plaintiff thereof for grant of
an ex-parte ad-interim injunction, whereupon the Court by an order dated
28.9.2004 granted an ex-parte ad-interim injunction restraining the
Appellants herein from passing resolutions confirming the nomination of
Shri Jagmohan Dalmia as Patron-in-chief for three years under Agenda No.
1(b).
A Civil Review Application marked as CRP No. 1734/2004
thereagainst was filed before the Madras High Court which is said to have
been heard in part and is still pending.
The Annual General Meeting was convened on 29.9.2004. In the said
meeting although no person was prevented from contesting the election for
the post of President of the Board on the ground of residence but it stands
admitted that Maharashtra Cricket Association was not permitted to take part
in the election through Mr. D.C. Agashe or any other person. We shall deal
with the said matter separately hereinafter. It further stands admitted that
Shri Jagmohan Dalmia, who chaired the meeting, had cast one vote as a
result whereof equal number of votes i.e. 15 each were polled on both sides
whereupon he gave his casting vote. The AGM, however, on 30.9.2004 was
adjourned till 26.10.2004. The Board herein filed a Special Leave Petition
on limited grounds against the said order of the Division Bench dated
29.9.2004. However, after the AGM was held, a review petition was filed
by ’Netaji’ marked as Review Petition No. 166 of 2004 inter alia contending
that the purported undertaking given by the learned Senior Counsel
appearing on behalf of the Appellant herein was not adhered to and
furthermore no appeal had been filed by the Appellants herein against the
order of injunction passed by the learned Single Judge in OA No. 803 of
2004.
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A review petition was also filed by Mr. D.C. Agashe seeking review
of the said order dated 29.9.2004 contending that he had not been allowed to
participate in the said election having been disqualified therefor although no
order of disqualification was served.
The said review application was admitted by the said Division Bench
of the High Court on 8.10.2004 observing that the undertaking across the bar
given by the learned senior counsel appearing on behalf of the Board had not
been given effect to in its letter and spirit. On an application made in this
behalf by ’Netaji’, an interim order also came to be passed. The High Court
opined:
"3. We feel that we had been misled by the
undertaking made on behalf of the first respondent
herein, namely the appellant in the O.S.A. No. 225
of 2004 (first defendant in the suit O.S. No. 765 of
2004), which culminated into the passing of the
judgment dated 29.9.2004 made in O.S.A. No. 225
of 2004 and C.S. No.765 of 2004, which is sought
to be reviewed in the review application No. 166
of 2004.
4. We are of the considered opinion that the
undertaking offered on behalf of the first
respondent/Board not to disqualify any member
from any of the zone, across the bar, has not been
given effect to in letter and spirit as directed in our
judgment dated 29.9.2004 made in O.S.A. No. 225
of 2004 and C.S. No. 765 of 2004 and prima facie
there are reasons to believe as to the alleged breach
of the said undertaking and hence, we are satisfied
that a prima facie case has been made out for
granting injunction and, therefore, there shall be an
order of interim injunction as prayed for until
further orders in C.M.P. No. 16419 of 2004.
Notice.
5. Taking note of the facts and circumstances of
the case, which led to the filing of the O.S.A. No.
225 of 2004 and the admitted fact that the first
respondent in the review application had not
preferred any appeal against the order made in
Application No. 803 of 2004 whereunder Hon’ble
Mr. Justice S. Mohan, Judge, Supreme Court
(Retired) was appointed as a Commissioner, and
that the meeting held on 29-30.9.2004 stands
adjourned as on date, we are inclined to appoint
Hon’ble MR. Justice S. Mohan, Judge, Supreme
Court (Retired) as an interim administrator until
further orders, of course, subject to His Lordship’s
consent for the same, which shall be obtained
through the Registry. In such event, the Hon’ble
Mr. Justice S. Mohan, Judge, Supreme Court
(Retired) shall be paid a remuneration of Rs.
1,00,000/- per month apart from other
administrative, travelling and incidental expenses,
by the first respondent/ Board. Notice."
The SLP (C) Nos. 21820-22/2004 have been preferred by the
Appellants herein questioning the said order dated 8.10.2004. In the Special
Leave Petition filed by the Board, the Delhi & District Cricket Association
has joined wherefor an application for permission to file the same has been
prayed for. This Court passed the following order on 11.10.2004:
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"List this matter for final hearing on 26th October,
2004. In the meantime the impugned order to the
extent of appointment of Administrator is stayed.
In the meantime Election/ appointment of
Respondent No. 3 Patron-in-Chief is also stayed
until further orders.
Correction and rectification if any be completed by
them."
Submissions have been advanced by Dr. A.M. Singhvi, learned senior
counsel, on behalf of Appellant No. 1, Mr. C.S. Vaidyanathan, learned
senior counsel on behalf of Appellant No. 2 and Mr. S.S. Ray, learned senior
counsel, on behalf of Shri Jagmohan Dalmia, whereas Mr. F.S. Nariman,
learned senior counsel appeared on behalf of Maharashtra Cricket
Association and Mr. Agashe and Mr. Harish N. Salve, on behalf of ’Netaji’.
An intervention application was filed by ’Club of Maharashtra’, represented
by Mr. Shanti Bhushan, learned senior counsel. Intervention applications
were also filed by The Karnataka State Cricket Association, Rajasthan
Cricket Association and Saurashtra Cricket Association.
Contention of Dr. Singhvi appearing on behalf of the Appellant was
that the suit was filed by ’Netaji’ only on an apprehension that a
representative or a member club would be debarred from contesting the
election to the post of President on the ground of residence and, no
contention had been raised as regard the right of an association to vote in the
said meeting.
Dr. Singhvi would submit that there had been similar instances in the
past where the Chairman of the meeting had cast two votes one in terms of
Rule 25 and another in terms of Rule 26. The learned counsel would urge
that as the rules of the Board constitute contract between the members, only
the ’doctrine of fairness’ shall apply in the conduct and affairs of the Club,
and, thus, even minor deviations are permissible in law. Reliance in this
behalf has been placed on T.P. Daver Vs. Lodge Victoria No. 363, S.C.
Belgaum [1963 SC 1144 : 1964 (1) SCR 1].
It was urged that the High Court wrongly exercised its jurisdiction in
entertaining the review application. Reliance in this regard has been placed
on Parsion Devi and Others Vs. Sumitri Devi and Others [(1997) 8 SCC
715] and Lily Thomas and Others Vs. Union of India and Others [(2000) 6
SCC 224].
The learned counsel would argue that the undertaking given by the
learned counsel appearing on behalf of the Appellant before the Division
Bench of the Madras High Court was in consonance of the contention raised
in the Memo of Appeal itself which had been duly recorded and the said
undertaking having not been violated, the application for review was not
maintainable. Taking us through the Memo of Appeal in OSA No. 225 of
2004, the learned counsel would contend that on a perusal thereof it would
be evident that an appeal was preferred against the order dated 28.9.2004
passed by the learned Single Judge passed both in OA No. 803 of 2004 and
OA No. 804 of 2004. It was contended that Netaji had no locus to file a suit
or pray for an order of injunction as it was not a member of the Board. In
the Annual General Meeting, Dr. Singhvi would submit, no person
contesting for the post of President having been disqualified on the ground
of residence, the review petition was not maintainable wherein, a shift was
made to the right of voting vis-‘-vis the right to contest for the post of
President which was not the basis for filing of the suit. Such a change in the
stand on the part of ’Netaji’, Dr. Singhvi would urge, is impermissible in
law. In any event, the learned counsel would contend, that the same might
give rise to an independent cause of action and, thus, keeping in view the
scope and purport of the suit the review application should not have been
entertained. It was further pointed out that in the said suit Mr. Agashe being
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not a party, the contention that he was not allowed to represent the
Maharashtra Cricket Association could not be taken to be a ground for
entertaining a review application. A breach of an undertaking in any view of
the matter, according to Dr. Singhvi, cannot give rise to a revival of suit
particularly when, how and in what manner the violation of such
undertaking had taken place had not been specified. The interim order,
according to Dr. Singhvi, goes far beyond the scope of the suit.
As regards the legality of the said meeting dated 29.9.2004, the
learned counsel had taken us through the orders passed in the litigations
concerning the Maharashtra Cricket Association and submitted that in view
of the order of the Bombay High Court dated 1.3.2004 and furthermore
having regard the objections raised by Mr. Thorve, Mr. Agashe could not
have been permitted to take part in the said meeting as a representative of
Maharashtra Cricket Association.
As regards the contention that Mr. Agashe was permitted to represent
the said Association on 12.9.2004 despite the protest by Mr. Thorve in
terms of his letter dated 10.4.2004, the learned counsel would submit, it was
so done in terms of the legal opinion obtained in that behalf and in any event
the same was an EGM and not AGM. It was contended that the said EGM
was convened having regard to the requisitions made by 27 out of 30
members to invite Mr. Dalmia to become the patron-in-chief of the Board
and, thus, the result thereof was a foregone conclusion. Furthermore, from
the minutes of the meeting held on 12.9.2004, it would appear that the same
was a requisitioned meeting and not an AGM. On the other hand, in terms
of order dated 21.9.2004 passed by the Bombay High Court both the
observers appointed by it were entitled to attend the meeting and further a
direction was issued to the effect that the Managing Committee of the
Association shall not take any major policy decision, save and except with
the consent of the two observers.
Drawing our attention to the notice dated 25.9.2004 issued by the
Maharashtra Cricket Association as regard the proposed meeting to appoint
the representatives of the Maharashtra Cricket Association in the
forthcoming Annual General Meeting of the Board, scheduled on 29th &
30th September, 2004 at Kolkata; it was urged that the same was illegal.
The learned counsel would contend that representation of the
Maharashtra Cricket Association in the Annual General Meeting which is an
annual affair was a matter involving major policy decision which could be
taken only in a duly constituted meeting. The said notice dated 25.9.2004
was illegal as it was not issued in terms of Rule 32 of the Rules of the
Maharashtra Cricket Association which postulates four clear days’ notice
before convening an ordinary meting and in relation to urgent matters, the
Rule postulates one clear day’s notice which had not been done in the instant
case as had also been pointed by Mr. Deshmukh in his letter dated
27.9.2004.
It was contended that Mr. Agashe and Mr. Thorve filed suits in the
Pune Civil Court. Mr. Agashe furthermore filed an application for grant of
ad-interim injunction directing the Maharashtra Cricket Association to allow
it to be represented through him which was not granted. In the
aforementioned premise, upon obtaining legal opinion and upon hearing the
contending and contesting parties, a decision was taken by the Board that
neither Mr. Agashe nor Mr. Thorve can represent the Maharashtra Cricket
Association.
On the aforementioned premise, it was submitted that there was a
fundamental difference between the meeting held on 12.9.2004 and
29.9.2004 particularly in view of the fact that the Board had before it the
letter of Mr. Deshmukh, suits were filed and furthermore there was a
possibility of the members of the Board facing a proceeding under the
Contempt of Courts Act for violating orders of the Bombay High Court. It
was argued that in any event, the decision being not an arbitrary one, the
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same could not have been questioned in the review application.
As regards, the representation of DDCA, it was contended that no
question was raised by any person whatsoever in the meeting to represent it
before the Board and in fact in the Annual General Meeting the said
representative of DDCA indeed was elected as an election officer. It was
pointed out that even in the review application, the said question was not
raised.
As regards, invitation of Mr. Dalmia for holding the post of patron-in-
chief, our attention was drawn to Rule 8 of the Articles of Association and it
was submitted that by reason thereof merely his contribution to the field of
cricket was recognized. The said post, according to Dr. Singhvi, is an
ornamental post who has no power or official authority in the management
of the Board.
Mr. C.S. Vaidyanathan, learned senior counsel appearing on behalf of
the DDCA would submit that as regards legality or otherwise of its
participation neither any objection was taken in the plaint nor in the review
petition nor any document was filed and in that view of the matter the
Respondents cannot be permitted to raise a contention for the first time in
this Court.
Drawing our attention to the order dated 18.9.2004 passed by the
Company Law Board, the learned counsel would contend that by reason of
the said order, DDCA was merely directed to maintain the status quo, i.e.,
restrained to holding the AGM.
Mr. S.S. Ray, learned senior counsel appearing on behalf of Mr.
Jagmohan Dalmia would adopt the submissions made by Dr. Singhvi and
would submit that as the Articles of Association of the Board constitute a
contract amongst the members, they are bound thereby unless the same are
found to be illegal, malafide and contrary to the statute. Reliance in this
behalf has been placed on Hyderabad Karnataka Education Society Vs.
Registrar of Societies and Others [(2000) 1 SCC 566].
The learned counsel would contend that having regard to the sequence
of events borne out from records and having regard to the various litigations
pending before different courts and in particular the directions issued by the
Bombay High Court in Writ Petition No. 1465 of 2004 and writ petition No.
1559 of 2004 nobody chairing a meeting as important as Annual General
Meeting of the Board could have allowed Mr. Agashe or Mr. Thorve to
represent the Maharashtra Cricket Association.
The learned counsel would contend that having regard to Rule 20(iii)
the old Managing Committee continues to function till the next meeting and
in this connection our attention has been drawn to Ramaiya’s Company
Law, Table A, Chapters 7 to 8 at pages 4119 and Buckley’s Companies
Law, Vol. I, 19th edition, pages 1016-17.
The learned counsel would, by way of example, draw our attention
also to Regulation 54 of Table A of the Companies Act as regard the right
of the Chairman to exercise his option for casting vote in terms of the
statute.
It was argued that the AGM had to be adjourned and did not
terminate. Therefore, Rule 20(iii) became operative.
As regard maintainability of the review application filed by the
Respondents herein, Mr. Ray would submit that the subsequent events could
not have been taken into consideration for the aforementioned purpose. It
was urged that the order admitting the review application and the interim
order passed by the Madras High Court is contrary to the relevant provisions
of the Code of Civil Procedure (Code) and on a wrong understanding of the
dispute relating to Maharashtra Cricket Association.
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The learned counsel has taken us through various purported
achievements of Shri Jagmohan Dalmia and submitted that in the interest of
the sport of cricket Shri Jagmohan Dalmia had been invited to become
patron-in-chief of the Board so that he can represent India in the ICC
meetings.
Mr. Shanti Bhushan, learned senior counsel appearing on behalf of
Intervenor \026 Club of Maharashtra which is said to be a member of
Maharashtra Cricket Association would submit that the meeting held on
27.9.2004 authorising Mr. Agashe as a representative of the Association was
not a valid one as mandatory notice therefor had not been given.
A valid resolution, according to Mr. Shanti Bhushan, would mean one
passed in a properly constituted meeting of the Maharashtra Cricket
Association as its participation in the AGM of the Board was a matter of
importance and not a day to day affair.
The learned counsel would contend that the suit filed by ’Netaji’
before the Madras High Court being based only on apprehension, the same
was not maintainable. In any event, it was submitted that the Netaji having
conceded that its grievance had been satisfied a review application could not
have been entertained.
Mr. Shanti Bhushan would argue that as the elected persons have not
been impleaded as parties herein, this Court cannot go into the question of
validity or otherwise of the said election.
Mr. F.S. Nariman, learned senior counsel appearing on behalf of the
Maharashtra Cricket Association and Mr. Agashe would, on the other hand,
submit that in the facts and circumstances of the case and having regard to
the materials brought on records the appointment of interim Administrator
by the Madras High Court was justified, particularly, when it was not
certain as to whether the old body or the new body had been functioning.
Drawing our attention to the order of injunction passed by the District
Court, Madras in the suit filed by Bharathi Cricket Club, the learned counsel
would contend that they could have excluded both Item Nos. 1(b) and 13 of
the Agenda which pertained to Mr. Jagmohan Dalmia or proceeded to hold
the meeting but it could not have been done partially.
The learned counsel would contend that in terms of the Rules only
elected representatives represent the Board but in the instant case, elected
representatives allegedly in terms of Rule 20(iii) had not taken charge and
the old body is still continuing.
Drawing our attention to the affidavit filed by Shri Jagmohan Dalmia
in S.L.P. (C) No. 22361-22363 of 2004, the learned counsel would contend
that he claimed to be continuing as Chairman both de facto and de jure.
According to learned counsel, ’good faith’ is at the core of the
function of a body like the Board. The election was to be held at the end of
the meeting and having regard to the fact that the meeting had been
adjourned, an odd situation has come into being, viz., that the elected Board
cannot function and Mr. Dalmiya continues to be the President of the Board
so long he is not elected as patron-in-chief. According to the learned
counsel, malafide on the part of the President of the Board is apparent
inasmuch as he wanted confirmation of his own invitation as patron-in-chief
before the process of election was completed.
Mr. Nariman pointed out that in the Special Leave Petition, no
statement as to what had happened on 29th September, 2004 regarding
election of the office bearers of the Board had been made but the same had
been disclosed only in an additional affidavit filed in the S.L.P. of MCA.
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Drawing our attention to the fact that Mr. Agashe after having been
debarred from attending the Annual General Meeting made a representation
on 29th September, 2004 itself to the President of the Board asking for
reasons as regard his disqualification to participate in the meeting on behalf
of Maharashtra Cricket Association but he refused to accept the
representation and in that situation it had to be ultimately served on the
Secretary of the Board but no reply thereto has yet been received either by
Mr. Agashe or by Maharashtra Cricket Association.
The learned counsel would contend that although a resolution was
passed in the meeting of the Maharashtra Cricket Association in favour of
Mr. Agashe but he was not allowed to participate and if the AGM of the
Board was to be adjourned this item could also have been adjourned.
Drawing our attention to the additional affidavit filed on 20th October,
2004 wherein a special pleading has been made that at the Annual General
Meeting an opportunity of hearing had been given allegedly to both Mr.
Agashe and Mr. Thorve it was contended that the same was wholly
unnatural and, thus, gives rise to another controversy.
The learned counsel would contend that Mr. Thorve in his letter dated
10th April, 2004 took a positive stand that Mr. Agashe should not be
permitted to represent the Maharashtra Cricket Association but he was
permitted to do so by Mr. Dalmia as would appear from his letter dated
dated 3rd May,2004 purported to be upon obtaining legal opinion stated:
"Your letter dated 10 April 2004 addressed to our
Board was forwarded for legal opinion.
According to the legal opinion received, the orders
of the High Court as well as the Apex Court were
restricted to the "affairs of MCA" only and not
BCCI. Under the order of the Apex Court, the
MCA shall not undertake any "policy" decision
until disposal of the Appeal by the District Court.
The legal opinion further states that the restriction
on taking any "policy" decision by the
Maharashtra Cricket Association has nothing to do
with representing the Association in the meetings
of the Board. Even if any policy decision is taken
by the Board through its Working Committee, it
shall be the policy of BCCI and not MCA."
Mr. Nariman would contend that the legal opinion received by the
Board, which, having regard to the tenor of the said letter dated 3rd May,
2004, evidently was a written one, has designedly been withheld from this
Court. It is, thus, evident that there exists two contrary opinions whereupon
the Board had relied upon in two different situations. It was contended that
there was no reason as to why Mr. Jagmohan Dalmia himself did not affirm
any affidavit in this regard clarifying his position.
Mr. Nariman would submit that the fact that in a similar situation
Rajasthan Cricket Association was permitted to be represented in AGM
proves malafide on the part of the Board.
The learned counsel had also drawn our attention to the letter of Mr.
B.G. Deshmukh, one of the observers appointed by the Bombay High Court
and submitted that neither he could raise any objection as regard
requisitioning of the meeting nor could he have forwarded his letter to Mr.
Ajay B. Shirke and Mr. S.G. Thorve on the ground that they had asked for
the copy of his letter for being placed before the MCA. Such an act on the
part of Mr.Deshmukh, Mr. Nariman would contend, was improper
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particularly when the said addressees had no concern with the said notice
and, more so, when the same was received by them even before the service
thereof on the Maharashtra Cricket Association. Our attention was also
drawn to the counteraffidavit filed by the Respondent No. 1 wherein it has
been alleged:
"It is pertinent to state that the said observer
resides in Pune and the meeting was also to be held
in Pune itself and inspite of notice being served on
him, he does not attend the meeting. It is also
submitted that no objection as to the appointment
of Mr. D.C. Agashe to represent Maharashtra
Cricket Association has been raised by the said
observer. It is also peculiar that Mr.S.G. Thorve
and Mr. Ajay B. Shirke who had no concern with
the said notice was also given a copy even before
the same could be received by Maharashtra Cricket
Association. The deponent also wishes to point
out that Mr. R.G. Deshmukh, the learned observer
is the Chairman of one of the companies owned by
Mr. Ajay B. Shirke."
It was submitted that if the representation of Maharashtra Cricket
Association through Mr. Agashe in the earlier meetings of the Board had not
been a policy decision of Maharashtra Cricket Association, then why all of a
sudden it became so for the AGM. Only.
Drawing our attention to the affidavit of Mr. Agashe filed in S.L.P.
No. 21820-21822 of 2004, the learned counsel would submit that the
Chairman of the Board in the meeting firstly created an artificial right for
casting one vote as chairman and then exercised his right of casting vote
again, i.e., voting twice which was in contravention of the Rules.
In terms of Rule 3, there are 30 full members and in terms of Rule 5
only full members have right to vote. The Chairman of the Board is not a
member as he does not represent an Association. It was pointed out that it is
not necessary that the President of the Board would be the Chairman of the
meeting and in that view of the matter Rules 25, 26 and 27 must be
construed in such a manner so as to hold that the Chairman of a meeting
cannot vote twice but only once. In any event, the learned counsel would
contend that in a case of this nature the Chairman ought not to have
exercised his discretionary power to cast vote twice.
Mr. Nariman would draw our attention to the Judges Summons in
O.A. No. 803 of 2004 wherein the following prayers were made:
"1) This Hon’ble Court should not be pleased to
treat the application as ugent?
2) Why this Hon’ble Court should not be pleased
to pass an order of AD-INTERIM INJUNCTION
to restrain the Chairman oblique President of
BCCI from conducting the Annual General
Meeting on the 29th and 30th of September, 2004 at
Kolkata and direct that the said meeting be
conducted under the Chairmanship of any person
or persons of the stature of a retired Supreme
Court Judge or High Court Judge or any other
person or persons as to be named by this Hon’ble
Court with absolute powers to scrutinize and
approve the list of authorized representatives from
member associations eligible to vote in the said
Annual General Meeting of the 1st Respondent."
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Our attention has further been drawn to the order dated 28.9.2004
passed by the learned Single Judge of the Madras High Court in OA No. 803
of 2004 and OA No. 804 of 2004, para 14 whereof is as under:
"14. The third respondent is further prohibited
from disqualifying any member of BCCI and
prevent them from voting."
The learned counsel would point out that the Division Bench in its
order had referred to paragraphs 11 to 13 of the order dated 28.9.2004
passed by the learned Single Judge but omitted to notice paragraph 14
thereof. Even otherwise in the Memo of Appeal, no ground was taken
questioning the said order of injunction as contained in paragraph 14 of the
order passed by the learned Single Judge.
Mr. Nariman would further submit that the undertaking given by a
senior counsel must be construed in the light of the understanding of the
learned Judges before whom the same had been given across the bar and in
this connection our attention has been drawn to paragraphs 3 and 4 of the
impugned order, as noticed supra.
In this regard, our attention has also been drawn to the 4th question
raised in the S.L.P. filed by the Board which is in the following terms:
"iv) Whether the Hon’ble High Court was right in
concluding that the Learned Senior Counsel
appearing for the Petitioners herein gave an
undertaking to the effect that no one would be
disqualified from voting despite the fact that the
actual undertaking given by the Learned Counsel
to the effect that no one would be disqualified on
the ground of zonal representation to contest the
election?"
Our attention has also been drawn to the Ground (b) of the Special
Leave Petition which is to the following extent:
"\005It is submitted that the Learned High Court had
erred in coming to the conclusion that the
undertaking given by the Learned Senior Counsel
had been violated, when in fact no such
undertaking was given by the Learned Senior
Counsel. It is submitted that the undertaking given
by the Learned Senior Counsel was duly recorded
in the Order dated 29.09.2004 passed by the self
same Learned Division Bench. It is submitted that
the Learned Senior Counsel who earlier appeared
on 29.09.2004 also appeared on 08.10.2004 before
the Learned Bench and expressly recorded the
submissions that were made by him on
29.09.2004."
and contended that there was no reason as to why such a question had not
been raised before the Division Bench itself.
According to Mr. Nariman, the learned Senior Counsel appearing on
behalf of the Board before the Madras High Court has not filed any affidavit
as regard tenor of his undertaking and in this view of the matter the
statement of the Judge in the impugned order should be accepted.
Mr. Harish Salve, learned senior counsel appearing on behalf of
’Netaji’ would submit that the Board is a federal head of cricket
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associations. Having regard to the evolution of sports of cricket in this
country and in particular the fact that the Board controls the sport in India, a
higher standard of rectitude in the affairs of the Board is expected. Mr.
Salve would submit that in an Annual General Meeting of the Board, the
aspirations of an individual member could not have been given priority
having regard to the fact that the Board does not have private member. It
was argued that even the Rajasthan Cricket Association was not registered
and time had been taken to get it registered, but despite the same it was
allowed to vote but Maharashtra Cricket Association was not permitted
although the Board knew that litigations have been going on not only in
relation to the Maharashtra Cricket Association but also in relation to the
Rajasthan Cricket Association and Delhi & District Cricket Association and,
thus, in a situation of this nature, the Chairman ought to have acted
judiciously.
Relying on a decision of this Court in K. Murugan Vs. Fencing
Association of India, Jabalpur and Others [(1991) 2 SCC 412], Mr. Salve
would argue that even therein a retired Judge of this Court was nominated so
long a valid election was not made only with a view to see that the body like
the Olympic Association or the Board must act in the interest of the sports of
the country.
As regard exercise of right of ’casting vote’ by Mr. Dalmia, the
learned counsel would contend that the same could be exercised when there
was a genuine tie and not an artificial or a created one. Election of the office
bearers of the Board, according to Mr. Salve, should not only be a fair one
but must be appear to be such. It was argued that the adjournment of the
AGM was illegal and what happened on 29th September, 2004 was far below
the standard of conduct/ expected from a body like the Board and
furthermore the manner in which the meeting was conducted clearly creates
an air of suspicion.
As regard functioning of the Board, it was urged that the same being
based on trust, the "power and abuse" would bring into focus administrative
law situation. Reliance in this behalf has been placed on Nagle Vs. Feilden
and Others [1966 (2) QB 633 at 643 and 644] and St. Johnstone Football
Club Limited Vs. Scottish Football Association [1965 SLT 171]
Mr. Salve would argue that the Chairman of the meeting should have
acted as an umpire having regard to the role of the Board as a federal
association and keeping in view the mandate of Rule 5 in terms whereof
only 30 full members could exercise their right of franchise. According to
Mr. Salve, keeping in view the larger public interest, the technicality of
absence of the elected members in these proceedings should not stand in the
way of this Court declaring the election void particularly in view of the fact
that all the elected members have knowledge of the proceedings but are
sitting on the fence.
Dr. Singhvi, in reply, would draw our attention to the prayer for an
interim order by ’Netaji’ in the review application, i.e., for restraining the
newly elected body which, according to the learned counsel, would mean
that the old body had ceased to continue and pursuant to or in furtherance of
the said prayer only, the impugned order of injunction was passed by the
Division Bench.
As regard the AGM held on 29.9.2004, it was contended that some of
the items of Agenda, particularly, item Nos. 1(c) and 2 to 6 were taken up
and they were considered and resolutions thereupon were passed. Further on
30.9.2004, some other items of Agenda were taken up but item Nos. 1(b)
and 13 could not have been taken up in view of the order of injunction
passed by the District Court of Madras. According to the learned counsel,
by reason of such adjournment of the meeting, Mr. Dalmia did not derive
any benefit inasmuch as his nomination as representative of the Board to
ICC could have been passed in that AGM and in any event, even without
such resolution he would have continued to act as a representative before the
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said body.
The learned counsel would contend that the meeting was adjourned
with concurrence of all the participants present in the meeting and with no
opposition. According to Dr. Singhvi, the only persons who have been
taking objections were ’Netaji’ or ’Bharathi’ who are not even the members
of the Board and could not have participated in the election process.
As regard the power of the Chairman to cast two votes, the learned
counsel would submit that the rules envisage casting of votes by President
only and not by any other member, as would appear from the Rules 5 and
25 of the Rules. Rule 26 provides that the decision taken by the majority
shall prevail except in case of equality of votes when casting of vote may be
necessary by the Chairman. By reason of first part of Rule 27, Dr. Singhvi
would contend, no diminution of power is contemplated inasmuch as by
reason thereof the right of the Chairman to exercise his right as regards
’casting vote’ is preserved and the expression ’subject to rules’ must be held
to mean subject to Rule 26. Dr. Singhvi would contend that having regard to
the precedent as two votes had been cast by the Chairman even earlier, the
rule should be interpreted in the same way as was understood by all
concerned. He would argue that the subject matter of voting contained in
Rules 25 and 27 contemplate two different situations, as the context in which
Rule 25 is attracted is radically different from Rule 27.
The rule of harmonious construction, according to Dr. Singhvi, should
be applied in a situation of this nature inasmuch as, if Rule 27 is held to be
subject to Rule 5, the first part thereof shall become nugatory. Pointing out
the difference between Rule 26 and Rule 27, it was argued that whereas Rule
26 applies for all meetings, Rule 27 applies only to Annual General and
Special General Meeting.
According to Dr. Singhvi, having regard to Rule 43(1)(c) of the Rules,
an election dispute should be raised in terms thereof and in a case of this
nature the court should not entertain any election dispute when there exists
an alternative remedy.
Dr. Singhvi would argue that when there exists substantive laws
governing resolution of dispute in relation to election of office bearers of the
Board, this Court should not exercise its jurisdiction under Article 142 of the
Constitution.
Mr. S.S. Ray, learned senior counsel appearing on behalf of Mr.
Jagmohan Dalmia would submit that right of casting vote is not a common
law right but one granted by the statute. The provision for exercise of right
of casting vote is essentially for maintaining a status quo which in the cases
of clubs and associations should be construed to be the second vote.
The learned counsel would contend that in the meeting dated
29.9.2004 no member had been disqualified but in absence of any authorized
member to represent it, nobody could cast vote on its behalf. Keeping in
view the fact that the Board has nothing to do with the internal dispute of the
Maharashtra Cricket Association, this Court should not interfere in the
matter, particularly, when even in the next meeting a similar problem may
arise. Distinguishing the decision of this Court in K. Murugan (supra), the
learned counsel would contend that the factual matrix obtaining therein was
different and in the present case, there is no allegation of mis-management,
malfunctioning or mal-administration nor any allegation has been made
against Mr. Dalmia.
When the matter was listed before this Court on 11.10.2004, this
Court was given an impression that having regard to the fact that the election
of the office bearers of the Board had already taken place on 29.9.2004, the
new Board had taken over. An impression was also created that if the Board
was not allowed to function a stalemate would ensue, particularly, having
regard to the proposed test series and one dayers’ which were to be played
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between South Africa and India and one day cricket between India and
Pakistan. The impugned order appointing the Administrator by the Division
Bench of the Madras High Court, it was submitted, if allowed to continue,
would, thus, be detrimental to the interest of the sport of cricket. It was in
this situation, this Court stayed the operation of the impugned order to the
extent of appointment of Administrator. However, a different picture was
presented before us at the hearing stating that the new Board had not taken
over at all and the old Board had been functioning purported in terms of
Rule 20(iii) of the Rules. Thus, in law the old board could continue, the
Appellants were not seriously prejudiced and in any event no emergent
situation arose as had been projected before this Court.
The Board is a society registered under the Tamil Nadu Societies
Registration Act. It enjoys a monopoly status as regard regulation of the
sport of cricket in terms of its Memorandum of Association and Articles of
Association. It controls the sport of cricket and lays down the law therefor.
It inter alia enjoys benefits by way of tax exemption and right to use stadia at
nominal annual rent. It earns a huge revenue not only by selling tickets to
the viewers but also selling right to exhibit films live on TV and
broadcasting the same. Ordinarily, its full members are the State
Associations except, Association of Indian Universities, Railway Sports
Control Board and Services Sports Control Board. As a member of ICC, it
represents the country in the international foras. It exercises enormous
public functions. It has the authority to select players, umpires and officials
to represent the country in the international fora. It exercises total control
over the players, umpires and other officers. The Rules of the Board clearly
demonstrate that without its recognition no competitive cricket can be hosted
either within or outside the country. Its control over the sport of competitive
cricket is deep pervasive and complete.
In law, there cannot be any dispute that having regard to the enormity
of power exercised by it, the Board is bound to follow the doctrine of
’fairness’ and ’good faith’ in all its activities. Having regard to the fact that
it has to fulfil the hopes and aspirations of millions, it has a duty to act
reasonably. It cannot act arbitrarily, whimsically or capriciously. As the
Board controls the profession of cricketers, its actions are required to be
judged and viewed by higher standards.
An association or a club which has framed its rules are bound thereby.
The strict implementation of such rules is imperative. Necessarily, the office
bearers in terms of the Memorandum and Articles of Association must not
only act within the fourcorners thereof but exercise their respective powers
in an honest and fair manner, keeping in view the public good as also the
welfare of the sport of cricket. It is, therefore, wholly undesirable that a
body incharge of controlling the sport of cricket should involve in
litigations completely losing sight of the objectives of the society. It is
furthermore unfortunate that a room for suspicion has been created that all
its dealings are not fair. The Board has been accused of shady dealings and
double standards.
We have noticed the contentions raised by the parties herein at some
length not because they were absolutely necessary for the purpose of
arriving at a decision but with a view to show that the rival contentions
necessitate a deeper probe and scrutiny. Unfortunately, for the reasons
stated hereinafter, we are at this stage not in a position to do so and leave the
contentions wide open to be agitated by the parties before the appropriate
forums.
On 11th October, 2004, we had, after hearing the counsel for the
parties observed that if a situation arises this Court would go into the validity
of the election of the office bearers of the Board held in the meeting dated
29th September, 2004, but, as indicated hereinbefore, we did so under a
mistaken belief that the Board would be represented by the new office
bearers and, thus, all parties would be before us. However, it now stands
admitted that the office bearers either in their personal capacity or official
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capacity are not before us. They may have notice of the pendency of this
proceeding. They may be sitting on the fence and watching the proceedings
of this Court. But, unless they are made parties in these proceedings, we
would not be in a position to entertain the dispute as regard validity of the
meeting of 29th September, 2004 resulting in the election of the office
bearers. Giving an opportunity of hearing to the elected members in a
dispute of this nature is imperative and not a matter of mere procedure,
formality or technicality. The election dispute, therefore, must be
adjudicated upon by a proper forum.
The events leading to these appeals, as narrated hereinbefore, raise a
abysmal picture and a sordid state of affairs.
In the suit filed by Netaji, two interim applications were filed being
OA No. 803 and OA No. 804 of 2004. Indisputably, in OA No. 803 of
2004, the Court granted an order of injunction restraining the Board from
disqualifying any members of the Board and preventing them from voting.
Although in the Memo of Appeal filed by the Board before the Division
Bench of the Madras High Court against the said order, the orders passed
both in OA Nos. 803 and 804 of 2004 were sought to be questioned, no
ground in relation thereto appears to have been raised in the Memo of
Appeal in relation to the said order of injunction and no argument appears to
have been advanced before the Division Bench in that behalf. The Division
Bench of the High Court while passing the order on 29th September, 2004
noticed paragraphs 11 to 13 of the order of the learned Single Judge dated
28th September, 2004 but its attention probably was not drawn to paragraph
14 thereof. Even the attention of the Division Bench to the said effect does
not appear to have been drawn by the learned counsel appearing on behalf of
the Plaintiff \026 Respondent No. 1 herein. Had the intention of the Division
Bench specifically been drawn to the said order of injunction, we are sure
that the learned Judges would have dealt with it specifically. However, in
law the said order of injunction did not subsist as the suit itself was
withdrawn with the consent of the parties and both the appeal and the suit
were disposed of by the order dated 29.9.2004. However, whether the suit
itself could have been withdrawn and disposed of by the Division Bench in
purported exercise of its power under Sub-section (2) of Section 107 of the
Code as well as on the basis of the determination of the learned judges is
open to question. We are also not aware as to whether the original side
Rules of the Madras High Court contemplate such a situation.
Indisputably, an undertaking had been given by a learned Senior
Counsel appearing on behalf of the Board. In the impugned order, the
Division Bench before whom such undertaking had been given was of the
opinion that it was misled. This Court having regard to the understanding of
such undertaking by the Division Bench does not intend to deal with the
effect and purport thereof and as we are of the opinion that the Division
Bench of the Madras High Court itself is competent therefor. If paragraph
14 of the order of the learned Single Judge is to be taken into consideration,
it is possible to contend that the learned Judges of the High Court were
correct.
We are, furthermore, of the opinion that the jurisdiction of the High
Court in entertaining a review application cannot be said to be ex facie bad
in law. Section 114 of the Code empowers a court to review its order if the
conditions precedents laid down therein are satisfied. The substantive
provision of law does not prescribe any limitation on the power of the court
except those which are expressly provided in Section 114 of the Code in
terms whereof it is empowered to make such order as it thinks fit.
Order 47, Rule 1 of the Code provides for filing an application for
review. Such an application for review would be maintainable not only
upon discovery of a new and important piece of evidence or when there
exists an error apparent on the face of the record but also if the same is
necessitated on account of some mistake or for any other sufficient reason.
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Thus, a mistake on the part of the court which would include a
mistake in the nature of the undertaking may also call for a review of the
order. An application for review would also be maintainable if there exists
sufficient reason therefor. What would constitute sufficient reason would
depend on the facts and circumstances of the case. The words ’sufficient
reason’ in Order 47, Rule 1 of the Code is wide enough to include a
misconception of fact or law by a court or even an Advocate. An application
for review may be necessitated by way of invoking the doctrine "actus
curiae neminem gravabit".
It is true that in Moran Mar Basselios Catholicos and Another Vs. The
Most Rev. Mar Poulose Athanasius and Others [(1955) 1 SCR 520], this
Court made observations as regard limitations in the application of review of
its order stating :
"Before going into the merits of the case it is as
well to bear in mind the scope of the application
for review which has given rise to the present
appeal. It is needless to emphasise that the scope
of an application for review is much more
restricted than that of an appeal. Under the
provisions in the Travancore Code of Civil
Procedure which is similar in terms to Order
XLVII, rule 1 of our Code of Civil Procedure,
1908, the Court of review has only a limited
jurisdiction circumscribed by the definitive limits
fixed by the language used therein. It may allow a
review on three specified grounds, namely (i)
discovery of new and important matter or evidence
which, after the exercise of due diligence, was not
within the applicant’s knowledge or could not be
produced by him at the time when the decree was
passed, (ii) mistake or error apparent on the face of
the record and (iii) for any other sufficient reason.
It has been held by the Judicial Committee that the
words "any other sufficient reason" must mean "a
reason sufficient on grounds, at least analogous to
those specified in the rule.",
but the said rule is not universal.
Yet again in Lily Thomas (supra), this Court has laid down the law in
the following terms:
"52. The dictionary meaning of the word "review"
is "the act of looking, offer something again with a
view to correction or improvement". It cannot be
denied that the review is the creation of a statute.
This Court in Patel Narshi Thakershi v.
Pradyumansinghji Arjunsinghji, AIR 1970 SC
1273 held that the power of review is not an
inherent power. It must be conferred by law either
specifically or by necessary implication. The
review is also not an appeal in disguise. It cannot
be denied that justice is a virtue which transcends
all barriers and the rules or procedures or
technicalities of law cannot stand in the way of
administration of justice. Law has to bend before
justice. If the Court finds that the error pointed out
in the review petition was under a mistake and the
earlier judgment would not have been passed but
for erroneous assumption which in fact did not
exist and its perpetration shall result in miscarriage
of justice nothing would preclude the Court from
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rectifying the error\005"
(Emphasis supplied)
It is also not correct to contend that the court while exercising its
review jurisdiction in any situation whatsoever cannot take into
consideration a subsequent event. In a case of this nature when the court
accepts its own mistake in understanding the nature and purport of the
undertaking given by the learned senior counsel appearing on behalf of the
Board and its correlation with as to what transpired in the AGM of the Board
held on 29th September, 2004, the subsequent event may be taken into
consideration by the court for the purpose of rectifying its own mistake.
In Rajesh D. Darbar and Others Vs. Narasingrao Krishnaji Kulkarni &
Ors. [(2003) 7 SCC 219], this Court noticed:
"4. The impact of subsequent happenings may
now be spelt out. First, its bearing on the right of
action, second, on the nature of the relief and
third, on its importance to create or destroy
substantive rights. Where the nature of the relief,
as originally sought, has become obsolete or
unserviceable or a new form of relief will be
more efficacious on account of developments
subsequent to the suit or even during the
appellate stage, it is but fair that the relief is
moulded, varied or reshaped in the light of
updated facts. Patterson v. State of Alabama
[1934] 294 U.S. 600, illustrates this position. It is
important that the party claiming the relief or
change of relief must have the same right from
which either the first or the modified remedy
may flow. Subsequent events in the course of the
case cannot be constitutive of substantive rights
enforceable in that very litigation except in a
narrow category (later spelt out) but may
influence the equitable jurisdiction to mould
reliefs. Conversely, where rights have already
vested in a party, they cannot be nullified or
negated by subsequent events save where there is
a change in the law and it is made applicable at
any stage. Lachmeshwar Prasad v. Keshwar Lal
AIR 1941 FC 5 falls in this category. Courts of
justice may, when the compelling equities of a
case oblige them, shape reliefs - cannot deny
rights - to make them justly relevant in the
updated circumstances. Where the relief is
discretionary, Courts may exercise this
jurisdiction to avoid injustice. Likewise, where
the right to the remedy depends, under the statute
itself, on the presence or absence of certain basic
facts at the time the relief is to be ultimately
granted, the Court, even in appeal, can take note
of such supervening facts with fundamental
impact. This Court’s judgment in Pasupuleti
Venkateswarlu v. Motor & General Traders AIR
1975 SC 1409 read in its statutory setting, falls in
this category. Where a cause of action is deficient
but later events have made up the deficiency, the
Court may, in order to avoid multiplicity of
litigation, permit amendment and continue the
proceeding, provided no prejudice is caused to
the other side. All these are done only in
exceptional situations and just cannot be done if
the statute, on which the legal proceeding is
based, inhibits, by its scheme or otherwise, such
change in cause of action or relief. The primary
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concern of the court is to implement the justice of
the legislation. Rights vested by virtue of a
statute cannot be divested by this equitable
doctrine - See V.P.R.V. Chockalingam Chetty v.
Seethai Ache AIR 1927 PC 252."
Furthermore, the impugned order is interlocutory in nature. The order
is not wholly without jurisdiction so as to warrant interference of this Court
at this stage. The Division Bench of the High Court had jurisdiction to
admit the review application and examine the contention as to whether it can
have a re-look over the matter. This Court, it is trite, ordinarily would not
interfere with an interlocutory order admitting a review petition. The
contentions raised before us as regard the justification or otherwise of the
Division Bench exercising its power of review can be raised before it.
Furthermore, the court having regard to clause (ii) of its order dated
29.9.2004 may have to consider as to whether the election was held in
accordance with the constitution of the Board and the rules and bye-laws
framed by it.
The conduct of the Board furthermore is not above board. The
manner in which the Board had acted leaves much to desire.
The question as to whether the Maharashtra Cricket Association has
unjustly been deprived of its right to participate in the AGM through Mr.
Agashe whereas DDCA and the Rajasthan Cricket Association had been
allowed to participate therein is a question which would require deeper
probe and a detailed scrutiny.
The Board had not filed even legal opinion which it obtained before
replying to Mr. Thorve’s letter dated 10th April, 2004. The tenor of the
Board’s letter dated 3rd May, 2004 clearly demonstrates that a written
opinion was obtained as therein the following expressions have been used:
"the legal opinion further states"
In the said legal opinion a distinction appears to have been made
between a policy decision to be taken by Maharashtra Cricket Association
vis-‘-vis representation of the Association in the meetings of the Board. No
distinction might have been drawn therein as regard different types of
meetings of the Board, viz., Extraordinary General Meeting and Annual
General Meeting or any other meeting, nor do we find any. A person may
either be entitled to represent an association or he is not. A person’s right to
represent an association ordinarily would not vary with the nature of the
meeting unless otherwise provided in the statute. So far no satisfactory
explanation has been furnished as to why another legal opinion was sought
for and acted upon in preference to the first one.
One of the question is whether Mr. Agashe could have represented
the Maharashtra Cricket Association in terms of resolution dated
27.09.2004. Different standards cannot be adopted by the Board, viz., one
for the purpose of requisitioned meeting for inviting Mr. Dalmia to become
the patron-in-chief of the Board and other for the purpose of attending an
AGM. In other meetings, Maharashtra Cricket Association had admittedly
been represented by Mr. Agashe. It is also doubtful as to whether the Board
could have gone into, if at all, the validity or otherwise of the meeting of the
Maharashtra Cricket Association held on 27th September, 2004. It is also a
matter of contention as to whether Mr. Deshmukh had exceeded his
jurisdiction not only in taking his stand as contained in his letter dated 27th
September, 2004 but also sending copies thereof to Mr. Thorve and Mr.
Ajay B. Shirke before it was received by the Maharashtra Cricket
Association.
Mr. Deshmukh in terms of the order of the Bombay High Court prima
facie was merely to attend the meeting and give his approval or withhold it
as regard any policy decision which may be taken. Whether sending a
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representative of the Maharashtra Cricket Association is a matter of policy
warranting interference by the observers appointed by the Bombay High
Court is again a contentious issue. The members of the Association could
not have undermined the importance of electing its representative for the
ensuing Annual General Meeting of the Board.
The Maharashtra Cricket Association itself has filed a Special Leave
Petition questioning the order of the Division Bench of the Madras High
Court dated 29th September, 2004. In a situation of this nature, this Court
may not exercise its jurisdiction under Article 136 of the Constitution of
India because the order impugned before it is not correct. The jurisdiction of
this Court under Article 136 of the Constitution is a discretionary one.
In Municipal Board, Pratabgarh and Another Vs. Mahendra Singh
Chawla and Others [(1982) 3 SCC 331], it was held:
"6. What are the options before us. Obviously, as
a logical corollary to our finding we have to
interfere with the judgment of the High Court,
because the view taken by it is not in conformity
with the law. It is at this stage that Mr. Sanghi,
learned counsel for the respondent invited us to
consider the humanitarian aspect of the matter. The
submission is that the jurisdiction of this Court
under Article 136 of the Constitution is
discretionary and, therefore, this Court is not
bound to tilt at every approach found not in
consonance or conformity with law but the
interference may have a deleterious effect on the
parties involved in the dispute. Laws cannot be
interpreted and enforced divorced from their
effect on human beings for whom the laws are
meant. Undoubtedly, rule of law must prevail but
as is often said, ’rule of law must run akin to rule
of life. And life of law is not logic but experience.
By pointing out the error which according to us
crept into the High Court’s judgment the legal
position is restored and the rule of law has been
ensured its prestine glory. Having. performed that
duty under Art. 136, is it obligatory on this Court
to take the matter to its logical end so that while
the law will affirm its element of certainty, the
equity may stand massacred. There comes in the
element of discretion which this Court enjoys in
exercise of its extraordinary jurisdiction under Art.
136\005"
In Taherakhatoon (D) by LRS. Vs. Salambin Mohammad [(1999) 2
SCC 635], this Court held:
"20. In view of the above decisions, even though
we are now dealing with the appeal after grant of
special leave, we are not bound to go into merits
and even if we do so and declare the law or point
out the error - still we may not interfere if the
justice of the case on facts does not require
interference or if we feel that the relief could be
moulded in a different fashion..."
The said decision has been followed by a 3-Judge Bench of this Court
in Chandra Singh and Others Vs. State of Rajasthan and Another [(2003) 6
SCC 545].
Yet again in Ram Chandra Singh Vs. Savitri Devi and Others [(2003)
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8 SCC 319], this Court observed::
"In such an event also, the Court may have
to find out a remedy which would be just and
equitable.
The High Court furthermore failed to notice
the principle ’actus curiae neminem gravabit’.
In Rajesh D. Darbar & Others Vs.
Narasingrao Krishnaji Kulkarni & Ors. [JT 2003
(7) SC 209], this Court noticed:
"The courts can take notice of the subsequent
events and can mould the relief accordingly. But
there is a rider to these well established principles.
This can be done only in exceptional
circumstances, some of which have been
highlighted above. This equitable principle cannot,
however, stand in the way of the court adjudicating
the rights already vested by a statute. This well
settled position need not detain us, when the
second point urged by the appellants is focused.
There can be no quarrel with the proposition as
noted by the High Court that a party cannot be
made to suffer on account of an act of the Court.
There is a well recognised maxim of equity,
namely, actus curiae neminem gravabit which
means an act of the Court shall prejudice no man.
This maxim is founded upon justice and good
sense which serves a safe and certain guide for the
administration of law. The other maxim is, lex non
cogit ad impossibilia, i.e. the law does not compel
a man to do that what he cannot possibly
perform\005"
Recently, in M.P. Special Police Establishment Vs. State of M.P. and
Others [(2004) 8 SCC 788], this Court held:
"31. We have, on the premises aforementioned, no
hesitation to hold that the decision of the Council
of Ministers was ex facie irrational whereas the
decision of the Governor was not. In a situation of
this nature, the writ court while exercising its
jurisdiction under Article 226 of the Constitution
as also this Court under Articles 136 and 142 of
the Constitution can pass an appropriate order
which would do complete justice to the parties.
The High Court unfortunately failed to consider
this aspect of the matter."
However, keeping in view of the fact that the elected office bearers
are yet to take over charge, with a view to do complete justice to the parties,
we would in exercise of our jurisdiction under Article 142 of the
Constitution direct that the adjourned meeting should immediately be
convened. As regard the election of the office bearers of the Board, it would
further be open to an aggrieved party to question the legality or validity of
the said meeting dated 29th September, 2004. Netaji also may, if it is
otherwise permissible in law, subject to an appropriate order that may be
passed by the Madras High Court, may file an application for amendment of
the plaint or take such other step or steps as it may be advised.
Keeping in view of the fact that on 8th October, 2004 when the
impugned order was passed the new Board had not taken over as also having
regard to the prayer made in the interim application filed by Netaji for grant
of interim injunction restraining the newly elected Board from functioning in
the interim, we make our interim order dated 11th October, 2004 staying the
operation of the part of the order whereby Mr. Justice S. Mohan was
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appointed as an interim Administrator absolute leaving the parties to file
such interim applications as may be necessary in the changed situation.
However, keeping in view of the fact that interim order of injunction
as regard Agenda Item Nos. 1(b) and 13 been passed by a District Court at
Chennai, the suit filed by Bharathi Cricket Club, we are of the opinion that it
is not necessary to pass any other order at this stage as regard invitation to
Mr. Jagmohan Dalmia to become the patron-in-chief of the Board.
We are, however, of the opinion that it would not be appropriate to
restore the order of the learned Single Judge dated 28.9.2004 as was
submitted by Mr. Nariman as the purpose for which Mr. Justice S. Mohan
was appointed has lost its efficacy.
In view of the orders passed by us, we do not think it necessary to
pass separate orders in the Special Leave Petition filed by the Maharashtra
Cricket Association. The Maharashtra Cricket Association shall, however,
be at liberty to file an appropriate application for getting itself impleaded in
the proceedings pending before the Madras High Court, subject to any
objection that may be taken by the Board. We, however, furthermore are of
the opinion that keeping in view the facts and circumstances of this case that
part of the order of the Division Bench dated 29th September, 2004 whereby
and whereunder the Board was directed to pay a further sum of Rs. 1 lakh to
Mr. Justice S. Mohan as additional remuneration cannot be sustained. It is
set aside accordingly.
Keeping in view the peculiar fact situation obtaining herein, we would
request the High Court to consider the desirability of disposing of the
matters pending before it as expeditiously as possible.
These appeals are disposed of with the aforementioned directions. No
costs.