The Delhi High Court sets aside a Rs. 12.9 crore penalty imposed on footballer Anwar Ali, East Bengal FC, and Delhi FC. Justice Sanjeev Narula ruled that the All India Football Federation’s (AIFF) decision lacked detailed reasoning, which violated the principles of natural justice. The court emphasized that such actions must be transparent and well-founded. As a result, the penalties have been set aside.
New Delhi: The Delhi High Court set aside an order by the All India Football Federation (AIFF), which had imposed a Rs.12.9 crore penalty on footballer Anwar Ali, Emami East Bengal Football Club (EBFC), and Delhi FC for allegedly violating a tripartite player loan agreement.
Justice Sanjeev Narula, in his ruling, criticized the AIFF for failing to provide detailed reasoning for its decision, stating that such actions violate the principles of natural justice.
The court emphasized that,
“The practice adopted by the AIFF PSC of issuing a decision without providing detailed reasons is fundamentally violative of the principles of natural justice.”
As per the order dated September 13, The judgment further added,
“The right to a fair hearing encompasses not only the opportunity to be heard but also the right to know the reasons for any adverse decision,”
The controversy arose from a player loan agreement between Delhi FC (Anwar Ali’s parent club) and Mohun Bagan Super Giant (MBSG), under which Ali was loaned to MBSG for a period of four years.
However, on July 8, 2024, Anwar Ali terminated the agreement and returned to Delhi FC. Just two days later, on July 10, 2024, he transferred to Emami East Bengal FC.
Following this transfer, MBSG filed a complaint with the AIFF Players’ Status Committee (PSC), leading to an order that directed Anwar Ali, Delhi FC, and East Bengal FC to collectively pay Rs.12.9 crore in compensation to MBSG. The order also imposed a four-month match ban on Anwar Ali and prohibited Delhi FC and East Bengal FC from registering new players for two transfer windows.
In response, Delhi FC, East Bengal FC, and Anwar Ali challenged the AIFF’s decision in the Delhi High Court, claiming a violation of natural justice due to the lack of detailed reasoning in the PSC’s ruling. They argued that the decision lacked a clear rationale, which hindered their ability to understand the basis of the penalties and restricted their ability to contest it effectively.
The petitioners further pointed out that, despite multiple timely requests, the PSC failed to provide detailed reasoning for its decision. This, they argued, obstructed their right to appeal under Article 117.2 of the AIFF Disciplinary Code, which stipulates that an appeal can only be filed if the grounds for the decision have been requested.
The Court noted that despite two formal requests, the PSC did not provide the grounds for the impugned order. The Court emphasized that this non-disclosure impacted the petitioners’ fundamental right to appeal.
The Court observed,
“The absence of grounds restricts the Petitioners from preparing a comprehensive appeal and prevents them from appropriately challenging the decision, thereby violating principles of natural justice and due process. The AIFF’s inaction, in this regard, has caused prejudice to the Petitioners, as it denies them an effective remedy to contest the sanctions imposed upon them,”
In response, the AIFF informed the Court that the PSC acknowledged the petitioners’ request for the grounds of the decision and was in the process of preparing detailed reasons to support its order.
The Court then proposed giving the petitioners a fresh opportunity to be heard, which the AIFF accepted. The federation agreed to withdraw the original order and issue a new one after re-hearing all parties.
As a result, the Court disposed of the petitions with the assurance that the AIFF PSC would provide the petitioners with a fresh hearing. It also clarified that the merits of the case had not been examined and left all rights and contentions open for the parties involved.
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Anwar Ali represented by advocates Sarim Naved and Harsh Kumar, while Emami East Bengal FC was represented by Senior Advocate Aditya Sondhi, alongside Shivam Singh, Ishwar Singh, Abhinav Singh, Shubham Janghu, Yoshit Jain, and Anubhav Kumar.
Delhi FC’s representation included Senior Advocate Rahul Mehra and advocates Amitabh Tewari, Abhimanyu Tewari, Chaitanya Gosain, and Satvik Bansal.
MBSG represented by Senior Advocates Rajiv Nayar, Dayan Krishnan, and Jayant Mehta, along with a team of lawyers, including Vanita Bhargava, Ajay Bhargava, and Shlok Chandra.
The AIFF represented by advocates Prateek K Chadha and Sreekumar Aechuri.