The Bombay High Court has upheld the arbitration award in favour of Kochi Tuskers Kerala, ordering the Board of Control for Cricket in India (BCCI) to pay the now-defunct IPL franchise INR 538 crore. The verdict, delivered by Justice RI Chagla, dismissed BCCI’s challenge to the award, confirming that the court could not overturn the arbitrator’s findings.
Background and Timeline
- The Kochi franchise, which participated in IPL 2011, had its agreement terminated by BCCI in September 2011 over a bank guarantee issue.
- The franchise, led by Mahela Jayawardene and featuring players like Ravindra Jadeja, VVS Laxman, Steve Smith, and Brendon McCullum, finished eighth in their only IPL season.
- Ownership included a consortium of Indian companies operating as Kochi Cricket Private Limited (KCPL) and Rendezvous Sports World (RSW).
- Arbitration was invoked in January 2012, with the award in favour of Kochi passed in June 2015, directing BCCI to pay over INR 153 crore plus interest at 18% per annum.
- BCCI challenged the award, but the Bombay High Court has now rejected their plea.
Key Observations from the Court
Justice Chagla stated:
“There are no valid grounds raised in KCPL’s Petition and RSW’s Petition under Section 34 of the Arbitration Act to warrant an interference with the KCPL Award and the RSW Award… There is no patent illegality in the impugned awards which requires an interference by this Court.”
KCPL and RSW have been permitted to withdraw the amounts deposited by BCCI after four weeks from the date of the court order.
Next Steps for BCCI
- BCCI has six weeks to decide whether to challenge the verdict in the Supreme Court.
- BCCI Secretary Devajit Saikia said, “We will consult our legal team and, if there is merit in appealing to the Supreme Court, we will consider it.”
