{"id":337808,"date":"2024-12-23T18:00:18","date_gmt":"2024-12-23T12:30:18","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=337808"},"modified":"2024-12-31T12:15:28","modified_gmt":"2024-12-31T06:45:28","slug":"bombay-hc-imposes-rs-1-lakh-cost-lalit-modi-seeking-indemnification-bcci-against-ed-penalty","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/12\/23\/bombay-hc-imposes-rs-1-lakh-cost-lalit-modi-seeking-indemnification-bcci-against-ed-penalty\/","title":{"rendered":"Bombay HC imposes Rs 1 Lakh cost on Lalit Modi for seeking indemnification from BCCI against ED\u2019s penalty"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Bombay High Court:<\/span> In a writ petition filed by businessman Lalit Kumar Modi against the Board of Control for Cricket in India (&#8216;BCCI&#8217;) seeking indemnity from a Rs 10.65 Crore penalty imposed by Enforcement Directorate (&#8216;ED&#8217;) in 2018, the Division Bench of <span style=\"font-weight: bold;\">M.S. Sonak<\/span> and Jitendra Jain, JJ., imposed costs of &#8377;1 lakh on the petitioner, directing the amount to be paid to Tata Memorial Hospital, as in matters concerning the alleged indemnification of the petitioner for penalties imposed by the Enforcement Directorate (ED), there was no question of discharging any public function, and therefore, no writ could be issued to the BCCI in this regard.<\/p>\n<p style=\"margin-bottom: 3%;\">Mr Lalit Modi was appointed as the Vice President of BCCI. He contended that during this period, he was appointed as the Chairman of the IPL governing body, a subcommittee of the BCCI. During his tenure, the Enforcement Directorate imposed a penalty of &#8377;10.65 crores on him under FEMA through an order dated 31-05-2018. Aggrieved by the imposition of the penalty, Mr Lalit Modi invoking writ jurisdiction under Article 226 sought writ of mandamus directing the BCCI to pay or deposit the penalty amount with the ED contending that the penalty arose from actions undertaken during his tenure as Chairman of the IPL governing body and claimed that under Rule 34 of the BCCI Rules and Regulations, the BCCI was obligated to indemnify him for such penalties.<\/p>\n<p style=\"margin-bottom: 3%;\">Relying on the case of <span style=\"font-style: italic;\">Zee Telefilms Ltd<\/span>. v. <span style=\"font-style: italic;\">Union of India<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/3R9E86G9\" target=\"_blank\">(2005) 4 SCC 649<\/a> wherein the Supreme Court held that the BCCI was not included in the ambit of &#8216;State&#8217; under Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574842\" target=\"_blank\">12<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\">Constitution<\/a>, the Court held that the petition and the reliefs sought were not maintainable. The Court held that in matters of alleged indemnification of Mr Lalit Modi against penalties imposed upon on him by the ED, there was no question of discharge of any public function, thus, no writ could be issued to the BCCI.<\/p>\n<p style=\"margin-bottom: 3%;\">Thus, the Court held that the reliefs were wholly misconceived, and the petition was frivolous, and dismissed the petition with a cost of Rs.1 Lakh payable by Mr Lalit Modi to Tata Memorial Hospital within 4 weeks. The Court also directed the necessary proof of payment to be filed in this Court.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Lalit Kumar Modi v. Board of Control for Cricket in India, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/96Lyg9E0\" target=\"_blank\" rel=\"noopener\">2024 SCC OnLine Bom 3851<\/a>, decided on 00-00-2024<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">Judgment by: Justice MS Sonak<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the petitioner:<\/span> Advocates Mohit Goyal and Gaurav Gopal<\/p>\n<h3 style=\"color: #000080;\">Buy Constitution of India &nbsp;<a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3.amazonaws.com\/ebcwebstore\/images\/the-constitution-of-india-coat-pocket-edition-Gopal-Sankaranarayanan-ebc-front-cover.JPG\" alt=\"Constitution of India\" width=\"300\" height=\"200\" class=\"aligncenter size-large wp-image-294438\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">&#8220;In matters of alleged indemnification of the petitioner in the context of penalties imposed upon Lalit Modi by the ED, there is no question of discharge of any public function, and therefore, for this purpose, no writ could be issued to the BCCI.&#8221;<\/p>\n","protected":false},"author":67011,"featured_media":314919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[42285,12141,2876,76782,2569,76784,76783,37261,35267,33491,34015,46138,2704,76781,3043,66641],"class_list":["post-337808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-article-12","tag-article-226","tag-BCCI","tag-board-of-control-for-cricket-in-india","tag-Bombay_High_Court","tag-byelaws","tag-discharge-of-public-function","tag-ed","tag-enforcement-directorate","tag-fema","tag-foreign-exchange-management-act","tag-imposition-of-cost","tag-IPL","tag-lalit-kumar-modi","tag-Mandamus","tag-tata-memorial-hospital"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - 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