BCCI is a 'shop' engages in commercial activity thus attracts ESI Act: Bombay HC

BCCI). In a setback to the Board, the HC said, it has "no hesitancy to hold that the nature of activities conducted by the Board are commercial in nature and hence, covered under the term 'shop' for the purpose of ESI Act." The judgment by Justice Bharati Dangre pronounced on June 24 came in an appeal filed by the BCCI against an order passed by the Employees Insurance Court at Bombay (ESI Court) which sought sought quantification of the contribution from the Board as employer's contribution.

The ESI Act is a salutary 'social welfare legislation" to benefit employees. In 1978, the State had expanded the applicability of ESI Act to among other establishment, 'shops' that employs more than 20 persons for wages.

The HC, however, on a plea by BCCI counsel Aditya Thakkar stayed its judgment for six weeks to enable the board to approach the Supreme Court to appeal. The judgment copy was made available on Thursday.

The ESI court order of September 2021 had declared that the BCCI - a society registered in Chennai - is covered within the meaning of 'shop' under a September 1978 notification issued by the Government of Maharashtra under the provisions of Section 1(5) of the Employees State Insurance Act. 'Shop' though not defined under the ESI Act, the Oxford Dictionary defines it as "a building or part of the building where goods or services are sold, said the HC.

The SC had said 'shop' deserves a liberal interpretation. The HC said, "applying the very same analogy to the BCCI, where on ascertaining it's nature, functioning and object, it can be seen that the appellant is carrying out a commercial activity and earn money." The HC "as has been clearly admitted by (Chief Executive office) Dinesh Johri, but TV broadcasting rights