Delhi High Court sets aside ₹12.9 crore penalty on footballer Anwar Ali, East Bengal FC, Delhi FC

The Delhi High Court recently set aside an order of the All India Football Federation (AIFF) that slapped a penalty of ₹12.9 crore on footballer Anwar Ali, Emami East Bengal Football Club (EBFC) and Delhi FC for alleged violation of a tripartite player loan agreement [Anwar Ali v All India Football Federation and Ors.]. .Justice Sanjeev Narula observed that AIFF's act of passing a decision without providing detailed reasons was fundamentally violative of the principles of natural justice. "In the opinion of the Court, the practice adopted by the AIFF PSC of issuing a decision without providing detailed reasons is fundamentally violative of the principles of natural justice. 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 order dated September 13 stated..The controversy stemmed from the player loan agreement between Delhi FC (Anwar Ali's parent club) and Mohun Bagan Super Giant (MBSG) as per which the player was loaned to MBSG for four years. However, Anwar Ali terminated the agreement on July 8, 2024, returning to Delhi FC and subsequently transferring himself to Emami East Bengal FC on July 10, 2024.Following the transfer, MBSG initiated proceedings before the AIFF Players' Status Committee (PSC), which resulted in an order directing Anwar Ali, Delhi FC and EBFC to pay ₹12.9 crores in compensation to MBSG. Additionally, Anwar Ali was banned from participating in any matches for four months and Delhi FC and EBFC were prohibited from registering new players for two transfer windows. .Delhi FC, EBFC and Anwar Ali challenged this order before the Delhi High Court alleging violation of natural justice due to the lack of detailed reasons in the PSC’s decision.They argued that the order lacked a comprehensive rationale and failed to provide a clear justification for the sanctions imposed. They contended that this omission violated the principles of natural justice, as the absence of detailed reasoning made it difficult for the parties to understand the basis of the decision and effectively contest it.The petitioners also pointed out that despite making timely requests for the grounds of the PSC’s decision, no detailed reasons had been provided, thereby hindering their right to appeal. Under Article 117.2 of the AIFF Disciplinary Code, an appeal can only be filed if the appellant has requested the grounds of the decision..The Court observed that despite two requests made to the PSC, the grounds for the impugned order were not disclosed to the petitioners. It further noted that this non-compliance directly impacted the petitioners' right to appeal."The absence of grounds restricts the Petitioners from preparing a comprehensive appeal and prevents them from challenging the decision appropriately, 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," the Court said..Subsequently, AIFF submitted that the PSC had acknowledged the petitioners' request for supply of grounds and informed the Court that the PSC was in the process of formulating and framing detailed reasons to substantiate the order..The Court suggested providing the petitioners with a fresh opportunity to be heard, to which the AIFF agreed. It said that it would withdraw the original order and issue a new one after hearing all parties afresh..Accordingly, the Court disposed of the petitions with the assurance that the AIFF PSC would provide the petitioners with an opportunity to be heard afresh. It also left all rights and contentions of the parties open, while clarifying that the merits of the case had not been examined..Anwar Ali was represented by advocates Sarim Naved and Harsh Kumar.Emami East Bengal FC was represented by Senior Advocate Aditya Sondhi and advocates Shivam Singh, Ishwar Singh, Abhinav Singh, Shubham Janghu, Yoshit Jain and Anubhav Kumar.Delhi FC was represented by Senior Advocate Rahul Mehra and advocates Amitabh Tewari, Abhimanyu Tewari, Chaitanya Gosain and Satvik Bansal.MBSG was represented by Senior Advocates Rajiv Nayar, Dayan Krishnan and Jayant Mehta along with advocates Vanita Bhargava, Ajay Bhargava, Shlok Chandra, Vidushpath Singhania, Milind Jain, Phalguni Nigam, Aashita Khanna, Neil Goswami, Kushagra Jain and Sankalp Sharma.AIFF was represented by advocates Prateek K Chadha and Sreekumar Aechuri..[Read Order]