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Supreme Court of India

A.C. MUTHIAHversusBOARD OF CONTROL FOR CRICKET IN INDIA AND ANR.

Citation
2011 INSC 337
Decided
28 April 2011
Disposal
Matter referred to larger bench

Holding

A past President of the BCCI is an "Administrator" under the Regulations and therefore has locus standi to challenge the amendment, which is arbitrary and must be kept in suspension.

Summary

The appellant, a former President of the BCCI, challenged an amendment to Clause 6.2.4 of the BCCI's Regulations that exempted IPL, Champions League and Twenty‑20 events from the ban on administrators having commercial interests. He argued that the amendment was made to benefit the second respondent, who as a BCCI office‑bearer and Chairman of India Cements had won the IPL franchise for Chennai Super Kings, creating a conflict of interest. The Supreme Court, in a dissenting opinion, held that the definition of "Administrator" in the Regulations expressly includes past Presidents, giving the appellant locus standi to sue. The amendment was deemed arbitrary and biased, warranting an injunction to suspend its operation. The Court ordered the amendment to be kept in abeyance and restrained the second respondent from holding any BCCI office if he continues to own the franchise. The matter was referred to a larger bench for final resolution.

Issues considered

  • Whether a past President of the BCCI has locus standi to challenge an amendment to the BCCI Regulations.
  • Whether the amendment to Clause 6.2.4, creating an exception for IPL‑related events, is arbitrary, biased and violative of the conflict‑of‑interest rule.
  • Whether an injunction can be granted to suspend the effect of the amendment.

Legislation cited

Subjects

conflict of interestlocus standiBCCIIPL auctionregulatory amendmentinjunctionadministratorsports governancecivil suitstatutory interpretation

Judgment

                          (2011] 8 S.C.R. 445


                             A.C. MUTHIAH                                        A
                                      v.
     BOARD OF CONTROL FOR CRICKET IN INDIA AND
                           ANR.
             (Civil Appeal No. 3753 of 2011)
                                                                                 B
                            APRIL 28, 20·11
     [J.M. PANCHAL AND GYAN SUDHA MISRA, JJ.]*

       Memorandum and Rules and Regulations of BCCI,
  2008: Clauses 1(n), 6.2.4- Complaints filed by appellant-past C
  president of BCCI before the BCCI President alleging that
  second respondent being the office bearer·of BCCI and also
  the Chairman and M.D. of India Cements Limited was
  disqualified to participate in the auction held for owning Indian
· Premier League (IPL) in which he was declared sucdessful D
  bidder and thus came to own Chennai Super King ..;.. No
  response to the complaint - Suit filed by appellant - Just a
  few days after filing of the said suit, the BCCI on 27.9.2008
  introduced an amendment to Clause 6.2.4 carving out an
  Exception - After the amendment, the said clause read "No E
  Administrator shall have directly or indirectly any commercial
  interest in any of the events of the BCCI excluding IPL,
  Champions League and Twenty 20." - The amendment to
  Clause 6.2.4 was challenged by the appellant by filing a
  second suit wherein the appellant also filed two applications F
  seeking temporary injunction restraining the BCCI from
  permitting the second respondent to participate in the General
. Body Meeting and injunction against the amendment
  introduced by pleading to put it under suspension - High
  Court dismissed the applications on the ground that appellant G
  had no locus standi to question the Regulations and the court
 •   There being difference of opinion, the matter has been referred to larger
     bench and the dissenting opinion of Hon'ble Mrs. Justice Gyan Sudha Misra
     is reported herein.

                                    445                                          H
    446      SUPREME COURT REPORTS                   [2011] 8 S.C.R.


A also cannot interfere with the internal management of the
  society - On appeal, Held: Per Gyan Sudha Misra, J. - Past
    President of BCCI is also an Administrator and has locus
    standi to file suit challenging amendment to the Memorandum
    - Plea that the past President has to be nominated on any of
B   the sub-committees of BCCI to be treated as an Administrator
    is not tenable - In order to decide whether the plaintiff has a
    right to file a civil suit or not, locus standi or competence of
    the plaintiff alone is to be established and not the question
    whether the BCCI is a State within the meaning of Article 12
c   of the Constitution which is a condition to be fulfilled for
    invoking the jurisdiction u/Articles 226 and/or 227 of the
    Constitution as also Article 32 of the Constitution but surely
    not for filing a civil suit or injunction application - Once, it is
    held that the plaintiff/appellant was also an Administrator of
    the BCCI in view of the definition of Administrator, his
0
    competence to challenge the amendment introduced in the
    regulation of BCCI cannot be held as not maintainable on the
    ground that BCCI is not a 'State' within the meaning of Article
    12 of the Constitution - Conflict of interest does not require
    actual proof of any actual pecuniary gain or pecuniary loss -
E   Second respondent necessarily was privy to highly sensitive
    information about the bidding process, the design of the
    tender, the rules of the game, the future plans of BCCI in
    respect of IPL and, therefore, it was inconceivable that such
    insider information to which any major office bearer of BCCI
F   would necessarily be privy, would not have used and misused
    both potential and actual materials in the capacity of a bidder
    - Appellant fully succeeded in making out a prima facie case
    that this amendment smacked of arbitrariness and bias in
    favour of the second respondent and hence it was a fit case
G   for grant of injunction keeping the impugned amendment
    under suspension or abeyance - However, since second
    respondent has already participated and succeeded in the bid,
    and is also owning Chennai Super King, it is left open to him
    to exercise his option whether he wishes to continue as an
H   office bearer of the BCCI or own IPL Chennai Super King -
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                 447
               CRICKET IN INDIA
High Court was not justified in not granting the temporary       A
injunction claimed by appellant - Per Panchal, J: High Court
was justified in not granting the temporary injunction claimed
by appellant ..:. In view of difference of opinion, matter
referred to larger bench - Reference to larger bench -
 Constitution of India, 1950 - Articles 12, 32, 226, 227.        B
     The first respondent, the Board of Control for Cricket
in India (BCCI) is a society registered under the Societies
Registration Act which has its own Memorandum of
Association, Rules and Regulations. The Regulations of
the BCCI incorporated rules for Players, Team Officials, C
Managers, Umpires and Administrators. In the
Regulation, Clause 6.2.4 stated "No Administrator shall
have directly or indirectly any commercial interest in any
events of the BCCI." The Regulation further stated that
an office bearer of BCCI is an Administrator.               D.
     The appellant who was the past President of the
BCCI filed two complaints before the President of the
BCCI in his capacity as past President alleging
disqualification suffered by the second respondent on            E
the ground that he being the office bearer of BCCI and
also the Chairman and M.D. of India Cements Limited
should not have been allowed to participate in the auction
held for owning Indian Premier League (IPL) in which he
was declared a successful bidder and thus owned
                                                                 F
Chennai Super King. The appellant's complaints did not
receive any response which prompted him to file a suit
before the High Court. The appellant sought to enforce
Clause 6.2.4 against the second respondent. Just after a
few days of filing of the said suit, the BCCI on 27 .9.2008      G
introduced an amendment to Clause 6.2.4 carving out an
Exception. After the amendment, the said clause read
"No Administrator shall have directly or indirectly any
commercial interest in any of the events of the BCCI
excluding IPL, Champions League and Twenty 20." The
                                                                 H
   448     SUPREME COURT
                       ;
                         REPORTS              [2011] 8 S.C.R.


A said amendment was challenged by the appellant by
  filing a second suit wherein the appellant also filed two
  applications for injunction. In the first application, he
  sought a temporary injunction restraining the BCCI from
  permitting the second respondent to participate in the
8 General Body Meeting but in the second application, he
  sought injunction against the amendment introduced by
  pleading to put it under suspension.

       The Single Judge of the High Court dismissed the
  interim applications on the ground that no outsider can
C question the regulations of the society and the courts
  also cannot interfere in the internal management of the
  society. The Single Judge, however, did not consider the
  main issue and the amendment introduced in Clause
  6.2.4. The Division Bench upheld the order of the Single
D Judge.
         The question which arose for consideration in the
    instant appeal was whether the appellant had locus
    standi to file a civil suit challenging the amendment
E · introduced by the BCCI in Clause 6.2.4 of the Regulations
    as he is merely the past president of the BCCI and
    whether the same can confer any right on him as an
    Administrator so as to challenge the amendment
    introduced by the BCCI diluting the bar of commercial
F interest of the Administrator in the activities of the BCCI
    thus generating 'conflict of interest', and in case the
    answers were in the affirmative, then whether the
    amendment introduced by the BCCI in Clause 6.2.4 was
    fit to be injuncted by keeping the same in abeyance/
    suspension as it clearly gave rise to conflict of interest
G between the BCCI and the second respondent since he
    indulged in promoting his commercial interest while
    functioning as an office bearer/Administrator of the BCCI
    who participated and succeeded in the auction for
    owning IPL Chennai Super King.
H
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                   . 449
               CRICKET IN INDIA
     Referring the matter to larger bench (in view of              A
difference of opinion), the Court
    Per J.M. Panchal, J: [Judgment made non-reportable]

    Per Gyan Sudha Misra, J (Dissenting)
                                                                   B
    HELD: 1.1. Clause 1(n) of the Memorandum and
Rules & Regulations of BCCI, 2008 defines the term
'Administrator' to mean and inciude present and former
Presidents, Vice Presidents, Hony. Secretaries, Hony.
Treasurers, Hony. Jt. Secretaries of the Board of Control          C
for Cricket in India (BCCI), past and pres~nt Presidents
and Secretaries of Members affiliated to BCCI and any
person nominated in any of the sub committee appointed
by the BCCI as defined in the Memorandum and Rules
and Regulations of the ·eccl. The appellant was                    D
admittedly a past President of the BCCI and, therefore,
in view of the unambiguous definition of the
'Administrator' which includes past and present
Presidents and Secretaries. and Members affiliated to the
BCCI, it is difficult to accept the positio·n that the appellant   E
had no locus standi to file a civil suit challenging the
amendment introduced by the BCCI. [Para 12) (468-H;
469-A-B)

     1.2. The view taken by Justice Panchal that only if a
past President is nominated on any of the sub-                     F
committees of the BCCI, he would be deemed to be an
'Administrator' and not otherwise is not approved. This
view is clearly contrary to the express definition of an
'Administrator' given out in the Regulations of the BCCI
2008. Clause 32 of the Regulation, no doubt, deals with            G
misconduct and procedure required to deal wi.th
complaint received from any quarter or based on any
report published or circulated or on its own motion in the
subject matter of indiscipline or misconduct. Clause 32(v)
of the Regulation also deals with a provision regarding            H
    450    SUPREME COURT REPORTS              [2011] 8 S.C.R.


A expulsion of any Member, Associate Member,
  Administrator, Player, Umpire, Team Official, Referee or
  the Selector, as the case may be, and in case any of them
  is found guilty and expelled by the BCCI, he shall not in
  future be entitled to hold any position or office or be
B admitted in any Committee or any Member or Associate
  Member of the Board. Clause 32 thus clearly deals with
  the misconduct and procedure to deal with office bearers
  including all its constituents of the BCCI and for this
  purpose it also lays down as to who will be the competent
c persons as member of the sub committee to deal with
  misconduct. But to hold that in spite of the definition of
  an 'Administrator' given out in Clause 1 (n) of the
  Regulation which specifically includes President and past
  President of the BCCI, the same would not include an
  Administrator unless he is a member of the sub committee
0
  of the disciplinary committee which is constituted for
  dealing with the misconduct of any office bearer
  including all its constituents as envisaged under Clause
  32, would be a far fetched interpretation. The appellant
  in the capacity of past president of the BCCI was,
E therefore, an Administrator within the meaning of the said
  definition enumerated in Clause 1(n) of the Regulation
  and as such, he was competent to institute a suit in his
  individual capacity. Clause 1(n) of the Regulation cannot
  be allowed to result into a provision rendering it nugatory
F by overlooking the express provision of the definition of
  Administrator which unambiguously includes past
  President, by extracting or attributing interpretation to it
  with the aid of Clause 32 of the Regulation, which is not
  even remotely connected with the definition and meaning
G of the expression 'past -President' but is a separate and
  specific provision to deal with merely the consequence
  of misconduct and its procedure to deal with the cases
  of alleged misconduct which does not envisage dealing
  with cases wherein the legality and efficacy of any
H
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                  451
                CRICKET IN INDIA
amendment to the Regulation of the BCCI is under                 A
challenge. [Paras 12, 13] [469-A-G; 470-B-E]
     1.3. In the instant matter while dealing with the
question of 'locus standi' as to whether the appellant was
legally entitled to institute a suit for challenging the         B
amendment or not, Clause 1(n) of the Regulation which
includes 'past President' within the definition of
'Administrator' is the only relevant provision and to dilute
its effect, reliance cannot be placed on Clause 32 of the
Regulation. When Clause 1(n) clearly and explicitly
defines the term "Administrator' and declares expressly          C
that an 'Administrator' shall mean and include present
and former Presidents, Vice Presidents, Hony.
Secretaries, Hony. Treasurers, Hony. Jt. Secretaries of the
BCCI, and includes even past and present Presidents and
Secretaries of Members affiliated to BCCI i:;o much so that      D
even a representative of Member or an Associate Member
of Affiliated Member of the BCCI and any person
connected with any of the sub committee appointed by
the Board defined in the Regulation of the BCCI has been
included within the definition of Administrator, it would        E
be difficult to hold that such Administrator also has to be
a member of a sub committee which is constituted for
dealing with misconduct in order to challenge the
amendment introduced in the Regulation completely
missing that the power to challenge amendment of BCCI            F
is altogether different from dealing with cases of
misconduct against players, umpires or administrator. A
plain and literal interpretation of the Rule clearly indicates
that the past presidents also have been unequivocally
included within the meaning of 'Administrator' and while         G
an Administrator can also be included as a member of
the sub-committee for the Disciplinary Committee, it
cannot be interpreted so as to infer thatformer president
stands excluded from the definition of Administrator until
and unless he is a member of the Sub-Corri~ittee for             H
   452     SUPREME COURT REPORTS               [2011] 8 S.C.R.

A disciplinary proceedings. It is difficult to accept that this
  would be so in order to give it a purposive Interpretation
  as no purpose can possibly be inferred from his, on the
  contrary, the purpose is writ large that it amounts to grant
  exemption to the second respondent from getting
8 trapped into the bar imposed by Clause 6.2.4 of the
  Regulation of the BCCI. It is explicitly clear and not even
  remotely ambiguous that the object and purpose of
  Clause 32 is merely to lay down the procedure for dealing
  with misconduct of any player, umpire, administrator etc.
C and it is not even vaguely connected with the procedure,
  object or efficacy of the amendment in the Regulation nor
  the mode and manner of introducing amendment in the
  Regulation so as to infer that unless an Administrator
  whether past or present is member of the disciplinary
  committee or sub-committee, he cannot be held
D competent to initiate action against any illegality of the
  BCCI introduced by way of amendment into the
  Regulation or otherwise, is clearly an argument which is
  out of context and has absolutely no relevance to the
  question of locus standi of an administrator to challenge
E an amendment introduced in the Regulation. [Paras 14-
  16] [470-E-H; 471-A-F; 472-B-D]
       1.4. The instant matter is not even remotely
  connected with any disciplinary action to be taken against
F any member, as the specific issue in the suit is whether
  the amendment could have been introduced by the BCCI
  in Clause 6.2.4 ignoring and overlooking the fact that the
  existing office bearer of the BCCI cannot be allowed to
  participate in the auction for owning IPL or Twenty 20
G matches as it would clash and conflict with the interest
  of the BCCI. It is well-settled principle of interpretation
  that when the language in a statute is plain and admits
  of one meaning, the task of interpretation can hardly be
  said to arise, as in the instant matter, where the definition
H of 'Administrator' has been clearly given out in the
    A.C. MUTHIAH v. BOARD OF CONTROL FOR               453
               CRICKET IN INDIA
Regulation of the BCCI. But in order to oust the past A
 President and his competence to challenge the action of
 BCCI from questioning the speedy and hurried
 amendment introduced by the BCCI in order to assist the
 second respondent from participating in the bidding
 process for owning Chennai Super King and then to B
 interpret the definition of 'Administrator' so as to hold that
 he was not competent to file a suit, can hardly be held to
 be giving effect to a purposive and meaningful
 interpretation to the expression 'Administrator' as the
 purpose or object to serve some just cause is totally c
 missing. The safer and more correct course of dealing
 with a question of construction is to take the words
 themselves and again if possible at their meaning without
 any first instance reference to cases. Literal construction
·Of a provision cannot be allowed to assume a restrictive 0
•construction without considering its effect or
1consequence which would result from it for they often
rpoint out the real meaning of the words. It is no doubt true
 that if the application of the words literally would defeat
 .;he obvious intention of the legislation and produced a
 wholly unreasonable result, some violence may be done E
 ~o achieve that obvious intention and produce a rational
 -:onstruction. But the question of inconvenience and
  -.1nreasonableness must be looked at in the light of
  11pecific events. It would also be difficult to overlook the
  well settled position that if a particular construction does F
  not give rise to anomalies and the words used are plain,
  .,rguments regarding inconvenience is of little weight. It
  B also equally well settled rule of construction of statutes
   lhat in the first instance the grammatical sense of the
   r1ords is to be adhered to and the words of statute must G
   •rima facie be given their ordinary meaning. Where the
     rammatical construction of a statute is clear and
    rianifest, that construction ought to prevail unless there
    •e strong and obvious reason to the contrary but when
    r;ere is no ambiguity in the words, there is no room for H
   454      SUPREME COURT REPORTS                (2011] 8 S.C.R.


A construction. If the language of a statute is clear and
  unambiguous, the court must give effect to it and it has
  no right to extend its operation in order to carry out the
  real or supposed intention of the Legislature/Law maker.
  When the language is not only plain but admits of just
B one meaning, the task of interpretation can hardly be said
  to arise; What is not included by the Legislature (law
  maker), the same cannot be undone by the court by
  principle of purposive interpretation. Taking into
  consideration the said salutary principles ·of
c interpretation, the definition of the term 'Administrator'
  does not exclude the past president from the meaning of
  Administrator so as to hold that the action taken by the
  Administrator by filing a civil suit and questioning the
  amendment introduced by the BCCI in Clause 6.2.4 was
  not fit to be entertained on the ground that the appellant
0
  had no locus standi to challenge the amendment on the
  ground of his competence or locus standi. [Paras 18-22]
  [472-G-H; 473-A-D; F-H; 474-A-B-C-G; 475-A-C]
      Dental Council of India and Anr. v. Hari Parkash and Ors . .
E (2001) 8SCC 61: 2001 (2) Suppl. SCR 310 - referred to.

          The Attorney General v. The Mutual Tontine West
     Minster Chambers Association, Limited (1876) 1 Ex.>O. 469;
     Charles Bradlaugh v. Henry Lewis Clarke, (1883) VIII A.C.
F . ·354; Attorney General v. Prince Ernest Augustus of Hanover
     (1957) A.C. 436 - referred to.
       1.5. As the BCCI discharges important public
  functions such as the selection of Indian Team and the
  control on the players and has to discharge important
G public function, it cannot be expected to act arbitrarily
  whimsically and capriciously so as to hold that the two •
  suits are not maintainable at the instance of the appellant
  who although, admittedly, is the past president of the
  BCCI and hence an Administrator, had no locus standi to
H file even a civil suit and seek order of injunction for
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                455
                CRICKET IN INDIA
suspending the effect of amendment on the plea that as         A
he was not a member of the sub-committee, he was not
competent to challenge the amendment introduced in the
BCCI Regulation. [Paras 22, 23] [475-D-F]
     Mis. Zee Tele Films Ltd. and Anr. v. Union of India and
                                                               8
Ors. (2005) 1 SCR 913 - held inapplicable
     2.1. The appellant had not moved the High Court
under its writ jurisdiction under Article 226 or Article 32
of the Constitution before this Court so as to offer a plank
to the respondents to contend that as the BCCI is not a c
'State' within the meaning of Article 12, an Administrator
under the Regulation cannot file even a civil suit in the
capacity as former past President and hence as an
'Administrator' so as to challenge an unconstitutional
amendment in the Regulation of the BCCI. This is an o
appeal under Article 136 of the Constitution arising out
of an order passed in a civil suit refusing to grant
injunction which was filed in two regular civil suits.
Therefore, it is difficult to accept the contention for the
respondents and as accepted by Justice Panchal that E
merely because th.e BCCI cannot be regarded as an
instrumentality of the State, it will have to be held that the
two suits filed by the appellant are not maintainable. In
order to decide whether the plaintiff has a. right to file a
civil suit or not, locus standi or competence of the plaintiff F
alone is to be established and not the question whether
the BCCI is a State within the meaning of Article 12 of the
Constitution which is a condition to be fulfilled for
invoking the jurisdiction under Article 226 and/or 227 of
the Constitution as also Article 32 of the Constitution but
surely not for filing a civil suit or injunction application. G
[Paras 24, 25] [476-A-C-F-H; 477-A-B]
     2.2. When a civil suit is filed, the question as to
whether a party comes under the purview of
instrumentality of a State does not arise at all and the       H

                                                                   ..
    456      SUPREME COURT REPORTS               [2011] 8 S.C.R.


A whole and sole consideration would be as to whether the
   plaintiff had a cause of action to file a civil suit, whether
  he is competent to file a suit and whether the-suit is
  maintainable at his instance. If the civil suit is
  maintainable on the basis of existence of a cause of
B action, there is no room for assailing it by raising a
  constitutional issue that the suit is not maintainable since
  the BCCI is not an instrumentality of the State, as the said
  question is not relevant for adjudication of a civil suit
  under the provisions of the Code of Civil Procedure nor
c the civil courts are the Constitutional Courts to enter into
  that question. Once, it is held that the plaintiff/appellant
  is also an Administrator of the BCCI in view of the
  definition of Administrator, his competence to challenge
  the amendment introduced in the regulation of BCCI
  cannot be held as not maintainable on the ground that
0
  BCCI is not a 'State' within the meaning of Article 12 of
  the Constitution as civil suits can surely be filed and can
  be held maintainable if the plaintiff is able to make out a
  case that cause of action has arisen for filing a suit and
  if he is able to sustain the cause of action and he also is
E able to establish that he is the proper party to the suit,
  the same will have to be tried by the Court and cannot
  be dismissed on the ground of its maintainability. In fact,
  when a civil suit is filed for seeking civil remedy, the
  question whether the contesting party satisfies the
F condition that it is an instrumentality of the State is of no
  relevance as the civil courts do not have to discharge
  constitutional function so as to enter into this question.
                             ---
  If it does, it woul~ be traversing beyond the boundaries
  of its jurisdiction. Hence, this question is clearly
G irrelevant for the purpose of the controversy raised in this
  petition. [Paras 25, 27] [477-0-G; 479-A-D]
        T.C. Mathew vs. K. Balaji Iyengar and Ors. SLP(Crl.)
    No.10107 of 2010 - referred to.
H         3.1. Conflict of interest does not require actual proof

                              (l
    AC. MUTHIAH v. BOARD OF CONTROL FOR                  457
              CRICKET IN INDIA
of any actuaJ pecuniary gain or pecuniary loss as the           A
 principle of 'conflict of interest' is a much wider,
equitable, legal· and moral principle which seeks to
 prevent even the coming into existence of a future and/
 or potential situation which would inhibit benefit or
 promise through any commercial interest in which the           B
 principal actors are involved. The entire purpose of
 'conflict of interest' rule is to prevent and not merely to
 cure situations where the fair and valid discharge of one's
 duty can be affected by commercial interests which do
 not allow the fair and fearless discharge of such duties.      c
 On this aspect, it has been substantiated that the second
 respondent necessarily was privy to highly sensitive
 information about the bidding process, the design of the
 tender, the rules of the game, the future plans of BCCI in
 respect of IPL and so on and so forth. It is inconceivable     0
 that such in.sider information to which any major office
 bearer of BCCI would necessarily be privy, would not
 have used and misused both potential and actual
 materials by the second respondent in the capacity of a
 bidder through his company India Cements Ltd. Thus, no
artificial Chinese walls can be assumed to exist between        E
•the multiple personalities and activities of respondent
INo.2 both as tender issuer and as a bidder. It is for this
ireason that courts have levied and lined the principle of
"conflict of interest' both with the fiduciary character of a
->erson who should not put himself in a conflict situation      F
 and with the principles of a trustee dealing with a cesfui
 ..:tue trust. [Para 28.1] [480..C-H; 481-A]
      Pierce Leslie Peter & Co. Ltd. v. Violet Ouchterlony
 lflapshare & Ors. (1969) 3 SCR 203 - referred to.              G
    3.2. Although anyone might not have indulged in
 reating actual loss to the BCCI by any of his actions, the
act would remain that by virtue of his position as a
:hairman of a company who participated in the bid to
-wn IPL tournament and at the same time holdin9 the             H
    458      SUPREME COURT REPORTS               [2011) 8 S.C.R.


A position of an office bearer of the BCCI, is clearly bound
  to result into conflict of interest of the BCCI. The fact
  remains that the second respondent by virtue of his
  position as Vice-Chairman and Managing Director of India
  Cements Ltd. and ex-officio Member of the Governing
B Council of IPL clearly came in his way to participate in
  the auction held by the BCCI for IPL matches and it is for
  this very purpose that the amendment was hurriedly
  introduced so that the second respondent may not be
  held disqualified from owning IPL Chennai Super King.
c In fact, the concept of 'conflict of interest management'
  has increasingly drawn the attention of governments and
  citizens alike in all advanced countries including United
  States of America over the last several years as has been
  the case in much of the rest of the world. [Para 28.2) [481-
D C-D-E-H]
          Bray v. Bradford (1896) A.G. 44 - referred to.
        3.3. It is an inflexible rule of a court of equity that a
    person in a fiduciary position is not, unless otherwise
E   expressly provided, entitled to make a profit; he is not
    allowed to put himself in a position where his interest
    and duty conflict. The BCCI itself took care to ensure this
    principle by incorporating clause 6.2.4. But thereafter, the
    BCCI without any deliberation and discussion introduced
F   an amendment into this clause by making Twenty -20 IPL
    or Champions League Matches an exception to this rule
    for which the respondent could not come out with any
    plausible explanation. Thus the appellant clearly came
    out with a strong prima facie case that the amendment
    was introduced with an oblique motive to benefit the
G   second respondent so that he could not be held
    disqualified from participating in the auction and own
    Chennai Super King while continuing as Treasurer and
    thereafter as Secretary of the BCCI and hence an
    Administrator and thus the appellant succeeded in
H   establishing his plea that the amendment introduced by
     A.C. MUTHIAH v. BOARD OF CONTROL FOR               459
                CRICKET IN INDIA
the BCCI in Clause 6.2.4 was an abuse of the amending          A
power exercised by the BCCI in so far as the power of
amendment was introduced not to promote the game of
cricket but to promote the interest of the second
respondent as it is more than clear that without the
amendment, he would not have been entitled to                  B
participate in the bid as he was a Treasurer of the BCCI
and hence without the amendment he was not eligible
even to participate in the bid and enjoy dual status of that
of an office bearer of the BCCI as Treasurer and also own
Chennai Super King. [Paras 28, 29] [482-C-D-E-H; 483-A-        c
C]
     3.4. The appellant and the perception based on
consideration of the concept of conflict of interest and its
implication surely succeeded in making out a prima facie
case that this resulted in serving commercial interest of D
the second respondent which gave rise to conflict of
interest with the activities of the BCCI since he as
Administrator/office bearer was able to influence the
decision of the BCCI by being a treasurer and
simultaneously also participated in the IPL auction, E
clearly giving rise to commercial interest which is barred
if the amendment had not been introduced. If the
Administrator is clearly barred as per Regulation from
having any commercial interest in the events of BCCI, it
is beyond comprehension as to how only one class of F
matches which was IPL, Twenty-20 and Champions
League could be treated an exception by allowing an
office bearer to participate in the bid but preventing him
from other matches including Test Matches. The appellant
thus, fully succeeded in making out a prima facie case G
that this amendment smacks of arbitrariness and bias in
favour of the second Respondent and hence it was a fit
case for grant of injunction keeping the impugned
amendment introduced in Clause 6.2.4 of the BCCI
Regulation under suspension or abeyance. However,
                                                             H
    460     SUPREME COURT REPORTS             (2011] 8 S.C.R.

 A since the second Respondent has already participated
   and succeeded in the bid and is also owning the Chennai
   Super King, it may be appropriate to leave it open to him
   to exercise his option whether he wishes to continue as
   an office bearer of the BCCI or own IPL Chennai Super
 B King. The appellant succeeded in making out his case to
   the extent that the amendment was fit to be kept under
   suspension by granting an injunction against the
   amendment at least until the suit was finally decided. The
   courts below while considering the application for
_c injunction was fully competent to mould the relief in a
   given circumstance or situation which they have
   miserably failed to do. Hence, the impugned amendment
   dated 27.9.2008 was fit to be suspended by granting
   injunction against the same. This is clearly so as it would
   be difficult to overlook that multiple loyalties can create
 0
   commercial interest with the activities of BCCI thus
   resulting in conflict of interest since the financial or
   personal interest of the Board would clearly be
   inconsistent with the commercial and personal interest
   of the Administrator of the Board. In addition, the rule of
 E equity and fairness provides that no one who stands in
   a position of trust towards another can in matters
   affected by that position, advance his own interests for
   example, by trading and making a profit at that other's
   expense as the rule of legal prudence mandates that
 F once a fiduciary is shown to be in breach of his duty of
   loyalty, he must disgorge any benefit gained even though
   he might have acted honestly and in his principal's best
   interest. In the instant matter, when the BCCI held
   auction for owning IPL Team and an Administrator the
 G second respondent participated in the bid, variety of real
   and/or perceived conflict of interest cannot be ruled out.
   These included access to insider information, poi;sible
   undue influence on the decision makers who held the
   auction and the like. The injunction is granted by
 H directing suspension of operation of the impugned
   A.C. MUTHIAH v. BOARD OF CONTROL FOR                  461
               CRICKET IN INDIA
amendment dated 27.9.2008 introduced in Regulation              A
6.2.4 of the BCCI. In case, the second Respondent opts
to continue owning and operating IPL Chennai Super
King, he shall be at liberty to do so but in that event he
shall be restrained from holding any office in the BCCI
in any capacity. [Paras 30-32] [483-D-F-G-H; 484-A-B-D-         B
E; 485-A-F]
                    Case Law Reference:
Per Gyan Sudha Misra, J
  (1876) 1 Ex.D. 469            referred to       Para 20       c
  (1883) VIII A.C. 354          referred to       Para 20
  (1957) A.C. 436               referred to       Para 20
  2001 (2) S':fppl. SCR 310     referred to       Para 21       D
  (2005) 1 SCR 913              held inapplicable Para 24
  (1969) 3 SCR 203              referred to        Para 28.1
  (1896) A.C. 44                referred to        Para 28.2
                                                                E
    CIVIL APPELLATE JURISDICTION : Civil Appeal No.
3753 of 2011.
    From the Judgment & Order dated 24.03.201 Oof the High
Court of Judicature at Madras in OSA Nos. 227 to 229 of 2009.
                                                                F
                              WITH
C.A. No. 3754-3756 of 2011.

    Dr. Abhishek Manu Singhvi, Nalini Chidambaram, Rohit
Bhat, Vikas Mehta, Amit Bhandari, Narhari Singh for the
Appellant.                                                      G

    G.E. Vahanvati, AG, R.F. Nariman, P.R. Raman, Radha
Rangaswamy, Akhila Kaushik, A Poorv Kurup, Amit Sibal, Mihir
Chatterjee, Hari Shankar K., K. Harishankar, Vikas Singh
Jangra for the Respondents.                                     l-:
    462      SUPREME COURT REPORTS                   [2011] 8 S.C.R.


A         The Judgment of the Court was delivered by

          GYAN SUDHA MISRA, J. 1. Leave granted.

        When the world at large is endeavouring to eradicate
  conflict of interest in public life as also in private venture and
B the respondent - Board of Control for Cricket in India (shortly
  referred to as the 'BCCI'), which enjoys monopoly status as
  regards regulation of the sport of Cricket in India, and is
  perceived to follow the doctrine of "fairness" and "good faith"
  in all its activities, has itself recognized its value and importance
C by incorporating in its Regulation that

          "No administrator shall have directly or indirectly any
          commercial interest in any events of the BCCI,"
                                                                          i
    then whether any exception diluting its effect could be carved
D   out of that without any just cause by introducing an amendment
    into the same, is the question which essentially falls for
    consideration in these appeals. Consequently, the question
    also arises whether the amendment was fit to be kept under
    suspension by grant of an order of injunction against the same
E   as a result of which the respondent No. 2 would be restrained
    from functioning as an office bearer of the BCCI in any capacity
    as his commercial interest comes in conf!ict with the activities
    of the BCCI. In this context the question of locus .standi and
    legal competence of an 'Administrator' of the BCCI to file a suit
F   for assailing the amendment introduced in the BCCI Regulation,
    also arose for determination in the event of which only, the
    challenge could be sustained at his instance. While the suits
    are still pending in the High Court of Madras, the applications
    for injunction have been rejected against which these appeals
G   arise wherein extensive arguments have been advanced by
    learned counsel for the contesting parties in support of their
    respective pleas.

          2. Having deliberated and meticulously considered the
H
     A.C. MUTHIAH v. BOARD OF CONTROL FOR                      463
     CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
 same in the light of the background, facts and circumstances          A
 giving rise to these appeals as also having the benefit of the
 views expressed in the judgment and order of my learned
 Brother Panchal, J., I find it hard to subscribe to the view
 expressed therein and hence record reasons respectfully
 dissenting from the view on the issues raised in these appeals.       B
 For this purpose as also to test the relative strength and
 weaknesses of the arguments advanced and to have an overall
 view of the controversy involved, I deem it essential to relate
 the genesis and background of the matter under which these
 appeals arise.                                                        cl
       3. The 1st respondent in these appeals which is the Board
  of Control for Cricket in India (for short 'BCCI') is a society
  registered under the Societies Registration Act which has its
  own Memorandum of Association, Rules and Regulations.
  Apart from these, BCCI also has regulations for Players, Team        D
  Officials, Managers, Umpires and Administrators which controls
· the game of Cricket in India and discharges public functions
  which enjoys monopoly status as regards regulation of the sport
  of Cricket. It thus earns huge revenues and is perceived to
  follow the doctrine of "fairness" and "good faith" in all its        Ft
  activities. Fortunately, the Regulations of the BCCI which
  incorporates rules for Players, Team Officials, Managers.-
  Umpires and Administrators itself has incorporated a clause
  which is Clause 6.2.4 stating that
                                                                       F
      "No Administrator shall have directly or indirectly any
      commercial interest in any events of the BCCI",

 thus prohibiting conflict of interest of an Administrator with that
 of the BCCI. The Regulation further incorporates the definition
 which states that an office bearer of BCCI is an administrator        G
 and Regulation of the BCCI also elaborately defines as to who
 is an 'Administrator'.
     4. However, putting laws and regulations on paper, does
 not mark the end of fight against 'conflict of interest' in public    H
    464      SUPREME COURT REPORTS                   [2011] 8 S.C.R.

A service and more so in private venture. More appropriately, this
  step has to be viewed as a beginning. Effective implementation
  and execution is absolutely crucial if these laws and regulations
  are to be meaningful. Managing 'conflict of interest' is a relatively
  young system, but these young systAms require maturing in the
B form of sincerity, will and dedication and they must be effective
  in all spheres if they are to survive and become engrained in
  the institutional structures of governance by public as well as
  private bodies. In absence of this, even better established
  programmes for conflict of interest management could wither
c quickly, if ignored.
         5. Bearing the aforesaid principle in mind, it may be
    relevant to record the essential details and background of the
    matter which indicate that the appellant herein - Sri Muthiah who
    is the past president of the BCCI initially filed two complaints
D   on 5.9.2008 and 19.9.2008 before the President of the BCCI
    in his capacity as past President and hence an Administrator
    alleging disqualification suffered by the second respondent Sri
    N. Srinivasan who being the Chairman and M.D. of India
    Cements Umited should not have been allowed to participate
E   in the auction held for owning Indian Premier League ('IPL' for
    short - a separate sub-committee unit of BC.Cl) in which he was
    declared a successful bidder and thus owned Chennai Super             1

    King. The Complainant/Appellant therefore sought action ·
    against him as he brought to the notice of the BCCl-President :
F   that the second respondent - Sri N. Srinivasan being an office
    bearer of the BCCI who is also heading a company named
    'India Cements' had commercial interest giving rise to a
    "conflict of interest" with the Indian Premier League (for short
    'IPL') Tournament for which an auction was conducted by the
G   BCCI, in so far as he was in substantial control of the India
    Cements Ltd. which became the successful franchisee of the
    Chennai Super King and at the same time is also in the
    governing council of the IPL Tournament which disqualified him
    to participate in the bid for owning Chennai Super King.
~         6. The appellant's complaint did not meet with anv
     A.C. MUTHIAH v. BOARD OF CONTROL FOR                        465
     CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
· response whatsoever from the BCCI which prompted him to file A
  a suit in the Madras High Court on 24.9.2008 bearing
  C.S.No.No.930/2008 wherein the plaintiff-appellant herein
  sought to enforce Clause 6.2.4 against the second respondent
  - Sri N. Srinivasan as in the year 2008, respondent No.2 - Sri
  N. Srinivasan who is the Managing Director of India Cements B
  Ltd. became the successful bidder for the Chennai Super King
  in the IPL auction held by the BCCI and also held the office of
  the Vice Chairman and Managing Director of India Cements
  Ltd. which derived commercial interest in the events of the
  BCCI. Hence, the Plaintiff/Appellant herein raised an issue in _c
  the suit that the respondent No.2 - SrL .N. Srinivasan being the
  Vice-Chairman and Managing Director of India Cements Ltd.
  and also being Office Bearer in BCCI, violated the Regulation
  6.2.4 which specifically lays down that no 'Administrator' shall
  have direct or indirect commercial interest in any of the events D ..
  of the BCCI.

      7. Just after a few days of filing of the suit by the Plaintiff/
 Appellant herein - Sri Muthiah, wherein he sought to enforce
 the policy in Clause 6.2.4 against the second respondent - Sri
 N. Srinivasan, the BCCI met on 27.9.2008 and introduced an              E
 amendment to Clause 6.2.4 carving out an exception therein
 which reads as follows:

      "No Administrator shall have directly or indirectly any
      commercial interest in any of the events of the BCCI               F
      excluding IPL, Champions League and Twenty 20."

 Thus, by one stroke of an amendment, which was introduced
 with racing speed, without any deliberation by the BCCI, and
 without notice of 21 days to the members on this agenda which
 was required under the Regulation, the most commercial event            G
 of BCCI namely IPL, Champions League and Twenty 20
 matches were excluded from Clause 6.2.4 diluting the. entire
 effect of Claa$e 6.2.4, reducing this salutary clause into a dead
 letter.
    466     SUPREME COURT REPORTS                  [2011] 8 S.C.R.


A      8. The amendment introduced by the BCCI to Clause 6.2.4
  was, therefore,. challenged by the appellant by filing a second
  suit bearing C.S.No. 1167/2008 wherein the appellant also filed
  an interim application seeking an order of injunction in both the
  suits for restraining the BCCI from giving effect to the new
B amendment by keeping the same under suspension which
  according to the appellant, had been introduced surreptitiously
  merely to benefit respondent No.2 - Sri N. Srinivasan who had
  participated in the auction in pursuance to the tender issued
  by the BCCI for persons and corporates to own and operate a
c team for IPL matches wherein respondent No.2 - Sri N.
  Srinivasan who is the Vice-Chairman and Managing Director
  of a company known as India Cements Ltd:, became the
  successful bidder for the Chennai Super King in the IPL auction
  which according to the case of appellant, could not have been
  permitted in view of Clause 6.2.4 as it stood prior to the
0
  amendment. But in order to obviate the bar imposed by Clause
  6.2.4 which came in the way of Respondent No. 2 from
  participating in the auction for IPL, an amendment was hurriedly
  and most expeditiously introduced in Clause 6.2.4 in order to
E permit second respondent-Sri N. Srinivasan to participate in
  the bid in which he was a successful bidder and consequently
  owned Chennai Super King in spite of the bar of clause 6.2.4
  which was operating against him prior to its amendment and
  was introduced subsequent to the auction which was held for
  owning Chennai Super King, in absence of which he would
F have been ineligible to participate in the bid and hence
  disqualified. The appellant, therefore, filed two applications for
  injunction and in the first application bearing No. 1041/2008 he
  had sought a temporary injunction restraining the BCCI from
  permitting Respondent No.2 - Sri N. Srinivasan to participate
G in the General Body Meeting but in the second application he
  sought injunction against the amendment introduced by
  pleading to put it under suspension.

      9. However, the main thrust of the argument of learned
H counsel for the plaintiff/appellant all through in the suit and in
    AC. MUTHIAH v. BOARD OF CONTROL FOR                       467
    . CRICKET IN INDIA {GYAN SUDHA MISRA, J.]
.the appeal before .the High Court as also in the injunction          A
 application was to the effect thatthe amendment introduced by
 the BCCI in Clause 6.2.4 was an abuse of the amending power
 exercised by the BCCI, in so far as the power of amendment
  had been used not to promote Cricket, but to promote the
  interest of the second respondent. But the learned single Judge     B
 before whom the applications for injunction were filed in the suit
 was pleased to dismiss the interim applications for injunction
 as the single Judge compared the BCCI to private clubs and
 held that no outsider can question the regulations of the society
 and the courts also cannot interfere in the internal management      c
 of the society. The learned single Judge, however, did not
 consider the main issue in the two suits in the context of the
 amended Clause 6.2.4 and the amendment introduced in
 Clause 6.2.4 due to which the plaintiff-petitioner filed an appeal
 before the Division Bench against the rejection· of the              0
 applications seeking injunction. But even on appeal, the
 Division Bench dismissed the appeals against which these
 appeals by special leave have been filed and were heard at
 length.

     10. The first and foremost question that requires                E
consideration in this appeal by special leave is whether the
plaintiff/appellant herein can be held to be having any locus
standi to file a civil suit challenging the amendment introduced
by the BCCI in Clause 6.2.4 of the Regulations as he is merely
the past president of the BCCI and whether the same can confer        F
any right on him as an Administrator so as to challenge the
amendment introduced by the BCCI diluting the bar of
commercial interest of the Administrator in the activities of the
BCCI thus generating 'conflict of interest', and in case the
answers were to be held in the affirmative, then whether the          G
amendment introduced by the BCCI in Clause 6.2.4 was fit to
be injuncted by keeping the same in abeyance/suspension as
it clearly gave rise to conflict of interest between the BCCI and
respondent No.2 since he indulged in promoting his commercial
interest while functioning as an office bearer/Administrator of       H
    468      SUPREME COURT REPORTS                   [2011] 8 S.C.R.


A the BCCI who'participated and succeeded in the auction fo,:
  owning IPL Chennai Super King. To clarify it further, it may be•
  reiterated that if the petitioner/appellant can be held to be
  having the competence or locus to file a suit against the BCCI,
  then whether the suit can be held to be maintainable at his
B instance so as to enter into further question whether the alleged
  amendment introduced in Clause 6.2.4 can be held to be having
  any conflict of interest with the interest of BCCI as in that event
  it would permit respondent No. 2 to hold the field by functioning
  as office bearer of the BCCI and thus participate in all its policy
c decisions as well as deliberations, while continuing also as
  Vice Chairman/ Managing Director of his firm India Cements
  Ltd. and simultaneously also own Chennai Super King as
  successful bidder in the IPL auction.

       11. The preliminary question on which the entire edifice of
D the case rests which will have the effect of making the entire
  case stand or crumble down, is the question as to whether the
  plaintiff/appellant has the locus standi to file a civil suit in the
  High Court of Madras so as to challenge the amendment
  introduced by the BCCI under Clause 6.2.4. In this context, it
E is extremely relevant to record the definition of the term
  'Administrator' in the BCCI Regulations. Clause 1(n) defines
  the term 'Administrator' as under:-

          "Administrator: An Administrator shall mean and include
F         present and former Presidents, Vice Presidents, Hony.
          Secretaries, Hony. Treasurers, Hony. Jt. Secretaries of the
          Board of Control for Cricket in India ("the Board"), past and
          present Presidents and Secretaries of Members affiliated
          to BCC/ and any person nominated in any of the sub
          committee appointed by the Board as defined in the
G
          Memorandum and Rules and Regulations of the Board."

       12. The plaintiff/appellant is admittedly a past President
  of the BCCI and hence in view of the unambiguous definition
  of the 'Administrator' which include past and present Presidents
H and Secretaries and Members affiliated to BCCI, it is difficult
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                       469
    CRICKET IN INDIA [GYAN SUDHA MISRA, J.]

to accept the position that the petitioner/appellant had no locus      A·
standi to file a civil suit challenging the amendment introduced
by the BCCI. I find it hard to approve of the view taken by
learned Brother Panchal, J. that only-if-a past President is
nominated on any of the sub'-Committees of the BCCI, he would
be deemed to be an 'Administrator' and not otherwise as it is          B
clearly contrary to the express definition of an 'Administrator'
given out in the Regulations of the BCCI 2008. Clause 32 of
the Regulation no doubt deals with misconduct and procedure
 required to deal with cqmplaint received from any quarter or
 based on any report published or circulated or on its own             c
 motion in the subject matter of indiscipline or misconduct.
 Clause 32 (v) of the Regulation also deals with a provision
 regarding expulsion of any Member, Associate Member,
 Administrator, Player, Umpire, Team Official, Referee or the
 Selector, as the case may be, and in case any of them is found        0
guilty and expelled by the Board, he shall not in future be entitled
to hold any position or office or be admitted in any Committee
 or any Member or Associate Member of the Board. Clause 32
 thus clearly deals with the misconduct and procedure to deal
 with office bearers including all its constituents referred to        E
 hereinbefore of the BCCI and for this purpose it also lays down
 as to who will be the competent persons as member of the sub
 committee to deal with misconduct. But to hold that in spite of
 the definition of an 'Administrator' given out in Clause 1 (n) of
 the Regulation which specifically includes President and past
 President of the BCCI, the same would not include an                  F
 Administrator unless he is a member of the sub committee of
 the disciplinary committee which is constituted for dealing with
 the misconduct of any office bearer including all its constituents
 as envisaged under Clause 32, would be a far fetched
 interpretation so as to hold that unless an Administrator is          G
 appointed on a sub committee for the purpose of constituting
 a disciplinary committee under Clause 32 of the Regulation; he
 cannot be treated as an 'Administrator' within the meaning of
  Clause 1(n) of the Regulation and that it would not clothe him
 with any legal right to maintain an action in law against the BCCI    Hj
    470     SUPREME COURT REPORTS                  [2011] 8 S.C.R.


A even for challenging the arbitrary amendment, is difficult to
  agree and accept.

        13. On the contrary, I find sufficient force and substance
  in the c.ontention of the counsel for the appellant that the suits
  were filed by the appellant in the capacity of past president of
8
  the BCCI since he was an Administrator within the meaning of
  the said definition enumerated in Clause 1(n) of the Regulation.
  As such, he was competent to institute a suit in his individual
  capacity since Clause 1(n) of the Regulation cannot be allowed
  to result into a provision rendering it nugatory by overlooking
C the express provision of the definition of Administrator which
  unambiguously includes past President, by extracting or
  attributing interpretation to it with the aid of Clause 32 of the
  Regulation, which is not even remotely connected with the
  definition and meaning of the expression 'past President' but
D is a separate and specific provision to deal with merely the
  consequence of misconduct and its procedure to deal with the
  cases of alleged misconduct which does not envisage dealing
  with cases wherein the legality and efficacy of any amendment
  to the Regulation of the BCCI is under challenge.
E
        14. In the instant matter while dealing with the question of
  'locus standi' as to whether the petitioner/appellant was legally
  entitled to institute a suit for challenging the amendment or not,
  Clause 1(n) of the Regulation which includes 'past President'
F within the definition of 'Administrator' is the only relevant
  provision in my view and to dilute its effect, reliance cannot be
  placed on Clause 32 of the Regulation as it deals exclusively
  with the procedure for dealing with the cases of misconduct of
  the office bearers of the BCCI and its other constituents like
G Player, Umpire etc. In my view, this interpretation on the ground
  that the same would lead to a purposive interpretation of the
  expression 'Administrator' is neither literal nor purposive. When
  Clause 1 (n) clearly and explicitly defines the term
  'Administrator' and declares expressly that an 'Administrator'
  shall mean and include present and former Presidents, Vice
H
     A.C. MUTHIAH v. BOARD OF CONTROL FOR                      471
     CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
 Presidents, Hony. Secretaries, Hony. Treasurers, Hony. Jt. A
 Secretaries of the Board, and includes even past and present
 Presidents and Secretaries of Members affiliated to BCCI so
 much so that even a representative of Member or an
 Associate Member of Affiliated Member of the Board and any
 person connected with any of the sub committee appointed B
 by the Board as defined in the Regulation of the BCCI has
 been included within the definition of Administrator, it would
 be difficult to hold that such Administrator also has to be a
 member of a sub committee which is constituted for dealing
 with misconduct in order to challenge the amendment c
 introduced in the Regulation completely missing that the power
 to challenge amendment of BCCI is altogether different from
 dealing with cases of misconduct against players, umpires or
 administrator.

        15. A plain and literal interpretation of the Rule clearly     D
  indicates that the past presidents also have been unequivocally
  included within the meaning of 'Administrator' and while ari
  Administrator can also be included as a Member of the Sub-
  committee for the Disciplinary Committee, it cannot be
  interpreted so as to infer that former president stands excluded     E
  from the definition of Administrator until and unless he is a
  member of the Sub-Committee for disciplinary proceedings. It
  is difficult to accept that this would be so in order to give it a
  purposive interpretation as no purpose in my opinion can
  possibly be inferred from this, on the contrary, the purpose is      (!
  writ large that it amounts to grant exemption to Respondent No.2
. from getting trapped into the bar imposed by Clause 6.2.4 of
  the Regulation of the BCCI which laid down that "Administrator
  shall have no direct or indirect commercial interest in any event
  of the BCCI." With utmost respect, to hold it to be a purposive      G
  interpretation would amount to overlooking the express
  provision of the definition of Administrator given out in Clause
  1(n) of the Regulation which lays down that the Administrator
  will include not only existing· presidents of the BCCI but also
  past president, so much so that even a representative of             H
    472      SUPREME COURT REPORTS                 [2011) 8 S.C.R.


A member or an associate member have been included within
  the definition of Administrator.

        16. It is explicitly clear and not even remotely ambiguous
  that the object and purpose of Clause 32 is merely to lay down
  the procedure for dealing with misconduct of any player, umpire,
8
  administrator etc. and it is not even vaguely connected with the
  procedure, object or efficacy of the amendment in the
  Regulation nor the mode and manner of introducing amendment
  in the Regulation so as to infer that unless an Administrator
  whether past or present is member of the disciplinary
C committee or sub-committee, he cannot be held competent to
  initiate action against any illegality of the BCCI introduced by
  way of amendment into the Regulation or otherwise, is clearly
  an argument which is out of context and has absolutely no
  relevance to the question of locus standi of an administrator to
D challenge an amendment introduced in the Regulation.

       17. To say that past president would mean to infer only
  those past president who are members of the sub committee
  of a disciplinary proceeding, in my view, amounts to deviating
E from the express meaning and intention ofthe Rule so as to
  oust the past president from the affairs of the BCCI, contrary
  to the express provision of the Regulation which cannot be held
  to be a correct or purposive interpretation of the Rule as this
  does not give effect to any purpose or laudable object which
F can be held to be serving the cause of justice, fair play and
  interest of the BCCI. On the contrary, it results into a restraint
  or hindrance to guarding the interest of the BCCI from indulging
  in any malpractice obstructing the course of justice and fair play.

       18. We have also to bear in mind at this stage that the
G instant matter is not even remotely connected with any
  disciplinary action to be taken against any member, as the
  specific issue in the suit is whether the amendment could have
  been introduced by the BCCI in Clause 6.2.4 ignoring and
  overlooking the fact that.the existing office bearer of the BCCI
H cannot be allowed to participate in the auction for owning IPL
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                      473
    CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
or Twenty 20 matches as it would clash and conflict with the          A
interest of the BCC!.

      19. We have to remind ourselves the well-settled principle
of interpretation that when the language in a statute is plain and
admits of one meaning, the task of interpretation can hardly be       B
said to arise, as in the instant matter, where the definition of
'Administrator' has been clearly given out in the Regulation of
the BCCI. But in order to oust the past President and his
competence to challenge the action of BCCI from questioning
the speedy and hurried amendment introduced by the BCCI in
order to assist respondent No.2 from participating in the bidding     C
process for owning Chennai Super King and then to interpret
the definition of 'Administrator' so as to hold that he was not
competent to file a suit, can hardly be held to be giving effect
to a purposive and meaningful interpretation to the expression
'Administrator' as the purpose or object to serve some just           D
cause is totally missing.

      20. If we were to dig at the labyrinth of the archives of
judicial precedents, we may take note of the case of The
Attorney General vs. The Mutual Tontine West Minster                  E
Chambers Association, Limited (1876) 1 Ex.D. 469 as also
Charles Bradlaugh vs. Henry Lewis Clarke, (1883) VIII A.C.
354, wherein it was held that "if there is nothing to modify, alter
 or clarify the language which the statute contains, it must be
construed in the ordinary, natural meaning of the words and           F
sentences". The safer and more correct course of dealing with
a question of construction is to take the words themselves and
again if possible at their meaning without any first instance
reference to cases. Literal construction of a provision cannot
be allowed to assume a restrictive construction without               G
considering its effect or consequence which would result from
it for they often point out the real meaning of the words. It is no
doubt true that if the application of the words literally would
defeat the obvious intention of the legislation and produced a
wholly unreasonable result, we must "do some violence" and
                                                                      HII
    474      SUPREME COURT REPORTS                  (2011] 8 S.C.R.


A so achieve that obvious intention and produce a rational
    construction. But the question of inconvenience and
    unreasonableness must be looked at in the light of specific
    events as was held in the case of Attorney General vs. Prince
    Ernest Augustus of Hanover, (1957) A.C. 436, wherein the
B   question was whether the words used in the statute were
    capable of a more limited construction. If not, the well settled
    rules of interpretation lays down that we must apply them as
    they stand, however unreasonable or unjust the consequence
    and however strongly we may suspect that this was not the real
c   intention of the law maker.

         21. It would also be difficult to overlook the well settled
    position that if a particular construction does not give rise to
    anomalies and the words used are plain, arguments regarding
    inconvenience is of little weight. It is also equally well settled
D   rule of construction of statutes that in the first instance the
    grammatical sense of the words is to be adhered to and the
    words of statute must prima facie be given their ordinary
    meaning. Where the grammatical construction Of a statute is
    clear and manifest, that construction ought to prevail unless
E   there be strong and obvious reason to the contrary but when
    there is no ambiguity in the words, there is no room for
    construction. If the language of a statute is clear and
    unambiguous, the court must give effect to it and it has no right
    to extend its operation in order to carry out the real or supposed
F   intention of the Legislature/Law maker. When the language is
    not only plain but admits of just one meaning, the task of
    interpretation can hardly be said to arise. What is not included
    by the Legislature (law maker), the same cannot be undone by
    the court by principle of purposive interpretation. This was the
G   view expressed by this Court also in the matter of Dental
    Council of India and Anr. Vs. Harl Parkash and Ors., (2001)
    8 sec 61 wherein it was held that it cannot ignore the obvious
    (provision) and object and the intention of the Legislature
    apparent from the context and so interpret and construe it, so
H   as to enlarge the scope of its application by imparting into it,
     A.C. MUTHIAH v. BOARD OF CONTROL FOR                     475
     CRICKET IN INDIA (GYAN SUDHA MISRA, J.]
meaning by implication, which do not necessarily arise. .            A
     22. Taking into consideration the aforesaid salutary
principles of interpretation, I am clearly of the view that the
definition of the term 'Administrator' does not exclude the past
president from the meaning of Administrator so as to hold that
                                                                     8
the action taken by the Administrator by filing a civil suit and
questioning the amendment introduced by the BCCI in Clause
6.2.4 was not fit to be entertained on the ground that the
appellant had no locus standi to challenge the amendment on
the ground of his competence or locus standi. I, therefore, find     C
it hard to subscribe and agree with the view that only if a past
President is nominated on any of the sub-committees of
disciplinary committee of the BCCI, he would be deemed to
be an Administrator and not otherwise, is a difficult proposition
to accept.
                                                                      D
       23. I also find sufficient .force and substance in the
  contention of learned counsel.for the appella.nt that as the BCCI ·
  discharges important public functions such as the selection of
  Indian Team and the control on the players and has to discharge
· important public function, it cannot be expected to act arbitrarily E
 whimsically and capriciously so as to hold that the two suits are
  not maintainable at the instance of the appellant who although
  admittedly is the past president of the BCCI and hence an
  Administrator, had no locus standi to file even a civil suit and
  seek order of injunction for suspending the effect of amendment F
  on the plea that as he was not a member of the sub-committee,
  he was not competent to challenge the amendment introduced
  in the BCCI Regulation.

     24. However, extensive arguments have been advanced
by learned counsel for the respondents that assuming there is        G
violation of any fundamental right by the Board, that will not
make the Board a 'State' for the purpose of Article 12 of the
Constitution. This submission although may be correct in view
of the ratio of the judgment delivered in the matter of Mis. Zee
Tele Films Ltd. And Anr. Vs. Union of India And Ors. (2005)          H
    476       SUPREME COURT REPORTS                      [2011] 8 S.C.R.


A  1 SCR 913, what is missed by the counsel for the respondents
  is that the appellant herein has not moved the High Court under
  its writ jurisdiction under Article 226 or Article 32 of the
  Constitution before this Court so as to offer a plank to the
  respondents to contend that as the Board is not a 'State' within
9 the meaning of Article 12, an Administrator under the Regulation
  cannot file even a civil suit in the capacity as former past
  President and hence an 'Administrator' so as to challenge an
  unconstitutional amendment in the Regulation of the BCCI. The
  counsel for the respondents has ignored while dealing with this
c question that the appellant had not moved the High Court for
  enforcement of his fundamental right under Articles 226 and
  227 of the Constitution nor a writ petition in this Court under
  Article 32 of the Constitution has been filed alleging
  infringement of his fundamental right, but has moved the High
  Court by taking recourse to the civil remedy of filing civil suits
0
  in the capacity as former president of the BCCI merely to
  ensure suspension of the amendment by way of seeking
  injunction which was introduced as the same was not in the
  interest of the BCCI, since it gave rise to direct or indirect
E commercial interest of respondent No.2 with the events of BCCI
  and is barred under Regulation 6.2.4 which is sought to be
  diluted by introducing the amendment in the same.

        25. It may be reiterated tharthis appeal by special leave
  is not a petition under Article 32 of the Constitution but is an
F appeal under Article 136 of the Constitution arising out of an
  order passed in a civil suit refusing to grant injunction which was
  filed in two regular civil suits. I, therefore, find it difficult to accept
  the contention of the counsel for the respondents and accepted
  by brother Panchal, J. that merely because the BCCI cannot
G be regarded as an instrumentality of the State, it will have to
  be held that the two suits filed by the appellant are not
  maintainable. In order to decide whether the plaintiff has a right
  to file a civil suit or not, locus standi or competence of the
  plaintiff alone is to be established and not the question whether
H the Board is a State within the meaning of Article 12 of the
       A.C. MUTHIAH v. BOARD OF CONTROL FOR                         477
       CRICKET IN, INDIA [GYAN SUDHA MISRA, J.]
. 0 Gonstitution which is a condition to be fulfilled for invoking the      A
   jurisdiction under Article 226 and/or 227 of the Constitution as
 \ also Article 32 of the Constitution but surely not for filing a civil
 ; suit or injunction application. It is perhaps in view of the
    Constitution Bench judgment delivered in the matter of Zee Tele
    Films (supra) due to which the appellant herein had to file a           B
    civil suit in the capacity as an Administrator that he has neither
    filed a writ petition under Article 226 and 227 of the Constitution
    before the High Court nor any writ petition under Article 32 of
    the Constitution before this Court so as to hold that he had no
    locus standi to file even a civil suit although he comes clearly        c
    within the meaning of definition of an 'Administrator'. Hence,
    the ratio of the decision in Zee Tele Films (supra) is wholly
    inapplicable and irrelevant to the issue involved in this appeal
   which arises out of civil suits and injunctions and the question
    of locus standi as to who can file a suit or whether the suit filed
                                                                            0
    by the appellant could be held maintainable is the only relevant
    issue for the purpose of maintainability of the suit and the
    injunction applications. When a civil suit is filed, the question
    as to whether a party comes under the purview of instrumentality
  \Of a State does not arise at all and the whole and sole
  ·consideration would be as to whether the plaintiff had a cause           E
    of action to file a civil suit, whether he is competent to file a
    suit and whether the suit is maintainable at his instance. If the
    civil suit is maintainable on the basis of existence of a cause
    of action, there is no room for assailing it by raising a
    constitutional issue that the suit is not maintainable since the        F
    BCCI is not an instrumentality of the State, as the said question
    is not relevant for adjudication of a civil suit under the provisions
    of the Code of Civil Procedure nor the civil courts are the
    Constitutional Courts to enter into that question.
                                                                            G
     26. In fact, it may be relevant by way of assistance to
  mention regarding one latest order dated 31.1.2011 of the
  Supreme Court passed in Special Leave Petition (Crl.) No.
  10107 of 201 O wherein a coordinate Bench of this Court upheld
  the judgment and order of the Kera la High Court whereby it. was          H
    478      SUPREME COURT REPORTS                  [2011] 8 S.C.R.

                                                                         ()
A held that the elected honorary office bearers of the Kerala
  Cricket Association and others like players, coaches,
  managers, members of various committees etc. are public
  servants within the meaning of Section 2 (C) of the Prevention
  of Corruption Act 1988 and the High Court of Kerala had
e reversed the judgment of the Special Court at Kerala which had
  held that they are not public servants. To elaborate it slightly, it
  may be stated that Special Leave Petition (Crl.) No. 10107/
  2010 titled T. C. Mathew vs. K. Balaji Iyengar and Ors. was filed
  challenging the judgment of the Kerala High Court wherein the
c substantial question of law which was raised before the
  Supreme Court in the aforesaid special leave petition was
  whether the elected office bearers of Kerala Cricket
  Association could be prosecuted under the Prevention of
  Corruption Act alleging offences under Section 13(1) (c) and
  (d) read with Section 13(2) of the Prevention of Corruption Act
0
  and whether Section 409, 420, 468, 471, 427 (a) and 201 of
  the Indian Penal Code was rightly initiated against elected
  honorary office bearers of the Kerala Cricket Association viz.
  honorary members of various committees, players, coaches,
  manager, boys team members etc. A Bench of this Court was
E pleased to dismiss the special leave petition in limine by order
  dated 31.01.2011 and thus upheld the judgment and order of
  the Kerala High Court which had held that the aforesaid elected
  officer bearers of the Kerala Cricket Association could be
  prosecuted under the Prevention of Corruption Act and hence
F the prosecution had rightly been launched. This judgment
  although is not on the point as to whether the past President is
  an Administrator or he has locus standi to challenge any illegal
  action of the Kerala Cricket Association, it surely has a
  pursuasive impact on the larger issue that the action of the
G BCCI and its state units are open to challenge even under the
  Prevention of Corruption Act at the instance of anyone who is
  concerned with its activities, more so an office-bearer/
  Administrator who is a past President in view of the definition
  of Administrator incorporated in the BCCI Regulation.
H
    A.C. MUTHIAH v. BOARD OF CONTROL FOR .                       479
    CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
      27. Thus once, it is held that the Plaintiff/Appellant is also     A
an Administrator of the BCCI in view of the definition of
Administrator, his competence to challenge the amendment
introduced in the regulation of BCCI cannot be held as not
maintainable on the ground that BCCI is not a 'State' within the
meaning of Article 12 of the Constitution as civil suits can surely      8
be filed and can be held maintainable if the plaintiff is able to
make out a case that cause of action has arisen for filing a suit
and if he is able to sustain the cause of action and he also is
able to establish that he is the proper party to the suit, the same
will have to be tried by the Court and cannot be dismissed on            c
the ground of its maintainability. In fact, when a civil suit is filed
for seeking civil remedy, the question whether the contesting
party satisfies the condition that it is an instrumentality of the
 State is of no relevance as the civil courts do not have to
discharge constitutional function so as to enter into this question.     D
If it does, it would be traversing beyond the boundaries of its
jurisdiction. Hence, in my opinion, this question is clearly
irrelevant for the purpose of the controversy raised in this
petition.

     28. The next question that needs to be addressed in this            E
appeal is whether the High Court was justified in rejecting the
application for injunction at least to the extent of keeping the
amendment introduced in Clause 6.2.4 of the Regulation of the
BCCI in abeyance specially when the appellant succeeded in
making out a prima facie case to the effect that participation           F
of respondent No.2 in the bid held for IPL matches and thus
own Chennai Super King directly or indirectly came in conflict
with the interest of BCCI as respondent No.2 during and after
bidding process for the IPL Team admittedly held positions in
four capacities which are as follows:-                                   G

       {i)    TrE:lasurer of BCCI;

       {ii)   Vice-Chairman and Managing Director of India
              Cements Ltd.
                                                                         H
    480         SUPREME COURT REPORTS                  [2011) 8 S.C.R.


A         (e)     Chairman, Managing Committee, Chennai Super
                  King; and
          (f)     Ex-officio Member of the Governing Council of IPL.
     Additionally, with effect from September 2008, respondent No.2
3 became the Secretary of BCCI and, therefore, the Ex-officio
     Chief Executive of BCCI and also Convener of the Meetings
     of the Committees of BCCI including IPL and Champions
     League. In this context, I find substance in the plea of learned
     counsel appearing for the appellant that conflict of interest does
c not require actual proof of any actual pecuniary gain or
     pecuniary loss as the principle of 'conflict of interest' is a much
     wider, equitable, legal and moral principle which seeks to
     prevent even· the coming into existence of a future and/or
     potential situation which would inhibit benefit or promise through
o any commercial interest in which the principal actors are
     involved. I also equally find substance in the contention that the
     entire purpose of 'conflict of interest' rule is to prevent and not
     merely to cure situations where the fair and valid discharge of
     one's duty can be affected by commercial interests which do
E not allow the fair and fearless discharge of such duties. On this
     aspect, it has been substantiated that respondent No.2
     necessarily was privy to highly sensitive information about the
     bidding process, the design of the tender, the. rules of the
     game, the future plans of BCCI in respect-of IPL and so on and
     so forth. It is contended that it is inconceivable that such insider
F information to which any major office bearer of BCCI would
     necessarily be privy, would not have used and misused both
     potential and actual materials by respondent No.2 in the
     capacity of a bidder through his company India Cements Ltd.
     Thus, I find it is correct to submit that no artificial Chinese walls :
G can be assumed to exist between the multiple personalities and
     activities of respondent No.2 both as tender issuer and as a
    ;bidder. It is for this reason that courts have levied and lined the
     principle of 'conflict of interest' both with the fiduciary character
     of a person who should not put himself in a conflict situation
l·f and with the principles of a trustee dealing with a cestui que
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                     481
    CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
trust. In support of this submission, learned counsel has relied A
on Pierce Leslie Peter & Co. Ltd. vs. Violet Ouchterlony
 Wapshare & Ors. (1969) 3 SCR 203 paras 3 and 4. In this
 context, the reasoning to the effect that there was no clear case
 of 'conflict of interest' which could be cited by the appellant with
adequate proof has no force in view of Clause 6.2.4 as it clearly B
 incorporates that no Administrator shall have any direct or
.indirect commercial interest in the events of the BCCI and
'amendment was introduced in this clause making IPL
 Champions League and Twenty -20 the international matches
 an exception to the same. Thus although anyone might not have     c
 indulged in creating actual loss to the BCCI by any of his
 actions, the fact remains that by virtue of his position as a
 Chairman of a company which participated in the bid to own
 IPL tournament and at the same time holding the position of
 an office bearer of the BCCI, is clearly bound to result into 0 .
conflict of interest ofthe BCCL It is altogether a different matter .
that the appellant has also tried to cite example that the
respondent No.2 as franchise holder for Chennai Super King
was compensated approximately for Rs.47 crores by
respondent No.2 on account of cancellation of a match.
                                                                      E
However, this is not the stage to rely on this part of the allegation
even if it is by way of an example as the suit is still pending
 before the High Court, but the fact remains that the respondent
 No.2 by virtue of his position as Vice-Chairman and Managing
 Director of India Cements· Ltd. and ex-officio Member of the
 Governing Council of IPL clearly came in his way to participate F
 in the auction held by the BCCI for IPL matches and it is for
 this very purpose that the amendment was hurriedly introduced
 so that the respondent No.2 may not be held disqualified from
 owning IPL Chennai Super King.
                                                                      G
       28. In fact, the concept of 'conflict of interest management'
 has increasingly drawn the attention of governments and
 citizens alike in all advanced countries including United States
 of America over the last several years as has been the case
 in much of the rest of the world. Even a century ago in the case H
    482       SUPREME COURT REPORTS                    [2011] 8 S.C.R.


A of Bray vs. Bradford (1896) A.C. 44, it was held that the
  directors as fiduciaries must not place themselves in a position
  in which there is conflict of interest between the duties to the
  company and their personal interests or d.uties to others. The
  courts have adopted a severe method of ensuring that the trust
B and confidence reposed in a fiduciary such as a director are
  not abused and the fundamental principle was stated by Lord
  Herschell in 'the aforesaid case (supra) when it was held as
  follows:-

          "it is an inflexible rule of a court of equity that a person in
c         a fiduciary position ... is not, unless otherwise expressly
          provided, entitled to make a profit; he is not allowed to put
          himself in a position where his interest and duty conflict. It
          does not appear to me that this rule is, as has been said,
          founded upon principle of morality. I regard it rather as
D         based on the consideration that, human nature being what
          it is, there is danger, in such circumstances, of the person
          holding a fiduciary position being swayed by interest rather
          than by duty, and thus, prejudic.:ing those whom he was
          bound to protect. It was therefore deemed expedient to lay
E         down this positive rule".

  In fact, the BCCI itself took care to ensure this principle by
  incorporating clause 6.2.4 wherein it laid down that "no
  administrator shall have directly or indirectly any commercial
F interest in any of the events of the BCCI". But thereafter, the
  BCCI without any deliberation and discussion introduced an
  amendment into this clause by making Twenty -20 IPL or
  Champions League Matches an exception to this rule for which
  the respondent could. not come out with any plausible
G explanation.

       29. Thus in my view, the appellant clearly came out with a
  strong prima facie case that the amendment was introduced
  with an oblique motive to benefit respondent No.2 so that he
  could not be held disqualified from participating in the auction
H and own Chennai Super King while continuing as Treasurer and
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                        483
    CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
thereafter as Secretary of the BCCI and hence an Administrator         A
and thus the appellant in my considered opinion, succeeded
in establishing his plea that the amendment introduced by the
BCCI in Clause 6.2.4 was an abuse of the amending power
exercised by the BCCI in so far as the power of amendment
was introduced not to promote the game of cricket but to               B
promote the interest of the 2nd respondent as it is more than
clear that without the amendment, Respondent No. 2 would not
 have been entitled to participate in the bid as he was a
Treasurer of the BCCI and hence without the amendment he
was not eligible· even to participate in the bid and enjoy dual        C
status of that of an office bearer of the BCCI as Treasurer and
 also own Chennai Super King.
      30. The plaintiff/appellant in my view and perception based
on consideration of the concept of conflict of interest and its
implication surely succeeded· in making out a prima facie case         D
that this resulted in serving commercial interest of respondent
No. 2 which gave rise to conflict of interest with the activities
of the BCCI since Respondent No.2 as Administrator/office
bearer was able to influence the decision of the BCCI by being
a treasurer and simultaneously also participated in the IPL            E
auction, clearly giving rise to commercial interest which is
barred if the amendment had not been introduced. Even at the
risk of repetition, it is essential to highlight that the BCCI
regulation itself acknowledges this position when it lays down
in clause 6.2.4 that "no Administrator shall have direct or indirect   F
commercial interest in any events of the BCCI", but dilutes its
effect by amending it and making IPL, Champions League and
Twenty-20 matches as an exception which is the most lucrative
and revenue generating event. If the Administrator is clearly
barred as per Regulation from having any commercial interest           G
in the events of BCCI, it is beyond my comprehension as to
how only one class of matches which was IPL, Twenty-20 and
Champions League could be treated an exception by allowing
an office bearer to participate in the bid but preventing him from
other matches including Test Matches. The plaintiff/appellant,
                                                                       H
    484      SUPREME COURT REPORTS                   [2011) 8 S.C.R.


A .in my opinion thus, fully succeeded in making out a prima facie
   case that this amendment smacks of arbitrariness and bias in
   favour of the Respondent No.2 and hence it was a fit case for
   grant of injunction keeping the impugned amendment
   introduced in Clause 6.2.4 of the BCCI Regulation under
B suspension or abeyance.

          31. However, since the Respondent No.2 has already
    participated and succeeded in the bid and is also owning the
    Chennai Super King, it may be appropriate to leave it open to
    him to exercise his option whether he wishes to continue as
C   an office bearer of the BCCI or own IPL Chennai Super King
    since in view of Regulation 6.2.4, bereft of amendment, he was
    not eligible even to participate in the IPL auction as it clearly
    generated commercial interest of an office bearer/
    Administrator in the events of BCCI, directly or indirectly. In my
D   considered view, the plaintiff/appellant succeed in·making out
    his case to the extent that the amendment was fit to be kept
    under suspension by granting an injunction against the
    amendment at least until the suit was f,nally decided. The Courts
    below while considering the application for injunction was fully
E   competent to mould the relief in a given circumstance or
    situation which it has miserably failed to do. But as the event
    of bidding has already taken place even before the amendment
    was introduced in the BCCI Regulation and the amendment
    was fit to be suspended, the respondent No. 2, in my opinion,
F   will have to exercise his option whether he wishes to continue
    owning IPL and operate Chennai Super King or is more
    interested in managing the affairs of BCCI as an Administrator
    with fairness, probity and rectitude by divesting himself from
    commercial interest which directly or indirectly results in conflict
G   of interest with the activities of the BCCI which was clearly
    barred under Regulation 6.2.4 but has been diluted by
    introducing an amendment after the IPL auction had already
    been held when Respondent No.2 was ineligible even to
    participate in the auction. Hence, the impugned amendment
H   dated 27.9.2008 was fit to be suspended by granting injunction
    A.C. MUTHIAH v. BOARD OF CONTROL FOR                     485
    CRICKET IN INDIA [GYAN SUDHA MISRA, J.]
againstthe same. This is clearly so as it would be difficult to      A
overlook that multiple loyalties can create commercial interest
with the activities of BCCI thus resulting in conflict of interest
since the financial or personal interest of the Board would
clearly be inconsistent with the commercial and personal
interest of the Administrator of the Bo~rd. In addition, the rule    B
of equity and fairness provides that no one who stands in a
position of trust towards another can in matters affected by that
position, advance his owh interests for example, by trading and
making a profit at that other's expense as the rule of legal
prudence mandates that once a fiduciary is shown to be in            c
breach of his duty of loyalty, he must disgorge any benefit
gained even though he might have acted honestly and in his
principal's best interest. In the instant matter, when the BCCI
held auction for owning IPL Team and an Administrator - the
 respondent No.2 participated in the bid, variety of real and/or     0
perceived conflict of interest cannot be ruled out. These
 included access to insider information, possible undue influence
 on the decision makers who held the auction and the like.

     32. Hence, I deem it appropriate to allow these appeals
and grant injunction by directing suspension of operation of the     E
impugned amendment dated 27 .9 .2008 introduced in
Regulation 6.2.4 of the BCCI. In case, the Respondent No. 2 -
Sri. N. Srinivasan opts to continue owning and operating IPL
Chennai Super King, he shall be at liberty to do so but in that
event he shall be restrained from holding any office in the BCCI     F
in any capacity whatsoever in view of the reasons assigned
hereinabove.

                            ORDER
     Since there is difference of opinion, let the papers of these   G
matters be placed before the Hon'ble the Chief Justice of India
for being assigned to appropriate Bench.

D.G.                           Matter referred to larger Bench.
                                                                     H


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A.C. MUTHIAH versus BOARD OF CONTROL FOR CRICKET IN INDIA AND ANR. — 2011 INSC 337 - Legal Desk AI