A major setback for the Board of Control for Cricket in India (BCCI) as the Bombay High Court has ordered it to pay ₹538 crores to the no longer active IPL franchise Kochi Tuskers Kerala (KTK).
The Kerala-based franchise was founded in 2011 when the IPL expanded to a 10-team format. However, KTK featured in just one season due to stadium availability issue and the ownership group failed to pay the minimum guaranteed amount to the BCCI the following year. This led to the termination of their contract from the league.
Bombay HC Orders BCCI to Pay ₹538 Cr to Kochi Tuskers
In what comes as a major blow to the Board of Control for Cricket in India, the Bombay High Court has upheld the arbitral award of ₹538 crore in favour of the now-defunct IPL franchise, Kochi Tuskers Kerala. The team, which made its IPL debut in 2010, was terminated just a year later in 2011.
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BCCI had challenged the 2015 arbitral ruling that granted ₹384 crore to Kochi Cricket Private Limited (KCPL) and directed the return of ₹154 crore to Rendezvous Sports World (RSW).
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According to Bar and Bench, a single-judge bench led by Justice R.I. Chagla dismissed BCCI’s challenge, stating that the court could not act as an appellate body over the arbitrator’s decision. The High Court backed the arbitrator’s finding that the termination of the Kochi franchise amounted to a repudiatory breach of contract and held that this did not warrant interference under Section 34 of the Arbitration Act.
“The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited,” the order noted. “BCCI’s attempt to revisit the merits of the dispute goes against the scope of Section 34. Dissatisfaction with the arbitrator’s findings on evidence or merit cannot be grounds to set aside the award.”
KTK Wins Against BCCI
As per the Bar and Bench report, despite BCCI continuing its engagement with KCPL for several months and even accepting payments, it abruptly terminated the franchise and encashed a prior guarantee issued by Rendezvous Sports World (RSW).
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Following the termination, RSW and KCPL initiated arbitration proceedings in 2012. The tribunal ruled in their favour in 2015 a decision that BCCI went on to challenge.
The court’s ruling upholds an arbitral award in favour of KTK’s owners, Kochi Cricket Private Limited and Rendezvous Sports World, delivering a major legal and financial blow to the BCCI.
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