The Bombay High Court has ruled against the Board of Control for Cricket in India, asking it to pay over Rs 538 crore to the now-defunct IPL team Kochi Tuskers Kerala. This decision brings a long legal battle to a close, siding with the franchise that was abruptly terminated by the board in 2011.
Kochi Tuskers Kerala’s Exit from IPL Sparks Major Dispute
Kochi Tuskers Kerala was removed from the IPL just one year after their debut. The BCCI claimed the franchise failed to provide a mandatory bank guarantee, which they said was a breach of the franchise agreement.
The team, operated by Kochi Cricket Private Limited and backed by Rendezvous Sports World, argued that the termination wasn’t fair. They pointed out challenges like stadium issues and fewer matches than expected. They also mentioned that payments had been made and talks with the board were still active when the contract was suddenly cancelled.
After ending the agreement, the BCCI also withdrew a previously submitted bank guarantee from the team’s account.
Court Finds Arbitration Decision Valid, Dismisses BCCI’s Objection
In 2015, an arbitration panel ruled in favor of the franchise. The panel awarded Rs 384 crore to Kochi Cricket Private Limited and Rs 153 crore to Rendezvous Sports World. The BCCI opposed this verdict and argued that the failure to submit the guarantee was a serious fault. They also felt that the amount decided as compensation was too high.
However, the High Court disagreed. Justice RI Chagla ruled that the arbitrator had looked at all the facts properly. The Court also said that the BCCI’s behavior showed they had accepted delays in the guarantee submission, which weakened their argument.
The Court stated, “The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited. BCCI’s endeavour to delve into the merits of the dispute, is in teeth of the scope of the grounds contained in Section 34 of the Act. BCCI’s dissatisfaction as to the findings rendered in respect of the evidence and/or the merits cannot be a ground to assail the Award.”
BCCI’s Challenge Rejected, Ordered to Clear Rs 550 Crore
The total payout ordered back in 2015 stood at Rs 550 crore. The BCCI took the matter to court hoping to overturn the arbitration ruling. But with the High Court now upholding the award, they are required to pay the full amount.
At the time, then IPL Chairman Rajeev Shukla had said, “We have got arbitrator Lahoti’s report. The majority of the members are of the opinion of appealing against arbitrator’s report. We are seeking legal opinion.”
The Court also turned down BCCI’s argument based on the Indian Partnership Act and confirmed that the arbitration process was valid. It also allowed the franchise owners to withdraw the money that had been deposited and gave the board six weeks if it wanted to appeal again.
Kochi Tuskers Kerala’s Short Stay in IPL Still Remembered
Kochi Tuskers Kerala had joined the IPL in 2010 after being bought for Rs 1,550 crore. But after the team defaulted on its yearly payment, the BCCI pulled them out of the tournament just a year later.
In their one and only IPL season, the team finished eighth in a ten-team table. They managed to win six out of fourteen games. Despite their short journey, they had a solid squad with players like Brendon McCullum, Mahela Jayawardene, Ravindra Jadeja and Brad Hodge, making their presence felt even in a single season.
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