The Bombay High Court has dismissed the Board of Control for Cricket in India’s (BCCI) challenge against a Rs 538 crore arbitral award in favour of Kochi Tuskers Kerala, a defunct Indian Premier League (IPL) franchise.
The ruling marks a significant legal victory for the franchise owners, Kochi Cricket Private Limited (KCPL) and Rendezvous Sports World (RSW).
BCCI terminated Kochi Tuskers’ franchise agreement in 2011, citing failure to provide a mandatory bank guarantee. The franchise maintained that the termination was unjust, citing factors such as stadium availability and reduced IPL matches. Despite BCCI accepting payments and engaging with the team, the contract was abruptly cancelled.
In 2015, an arbitral tribunal ruled in favour of KCPL and RSW, awarding Rs 384 crore to KCPL and Rs 153 crore to RSW, inclusive of interest and damages. BCCI contested the ruling, arguing that non-submission of the bank guarantee was a fundamental contract breach. However, the Bombay HC upheld the tribunal’s findings, stating that BCCI’s conduct had effectively waived the deadline.
The court also dismissed BCCI’s objections under the Indian Partnership Act, confirming the arbitration’s validity. KCPL and RSW were granted permission to withdraw deposited sums.
The verdict not only strengthens legal safeguards for IPL franchises but also raises questions about BCCI’s contractual governance. The cricket board has six weeks to appeal the ruling.
This landmark decision may reshape franchise agreements and arbitration precedents within the IPL.
