The habit of winning everywhere is quite old for the Indian Cricket Board (BCCI). Be it on the playing field or cricket diplomacy – India has strengthened its position in the cricket world quite a bit in the last decade. However, this time they had to see another side of the coin. The BCCI lost due to the verdict of the court in their own country.
The Bombay High Court has ordered the BCCI to pay a compensation of Rs 538.84 crore to the Kochi Tuskers Kerala for terminating the contract of the IPL team. According to the court’s order, Kochi Cricket Private Limited (KCPL) will have to pay Rs 385.50 crore and Rendezvous Sports World (RSW) will have to pay Rs 153.34 crore.
On Tuesday, the court rejected the BCCI’s objections and upheld the 2015 arbitration award. According to the judgment, the BCCI will have to pay a huge amount of compensation to the two ownership entities.
Kochi Tuskers Kerala played their only IPL in 2011. They finished eighth out of 10 teams that season. But in September of the same year, the BCCI alleged that the team had failed to submit a bank guarantee within the stipulated time, which was tantamount to a breach of contract.
As a result, the BCCI terminated the franchise agreement and the two parties immediately approached the court for mediation. In 2015, an independent arbitration tribunal ruled that the BCCI’s decision was wrong and ruled in favor of the owners of the club. The BCCI appealed to the High Court against that verdict, but the court dismissed it and upheld the previous arbitration award.
Justice Riyaz I. Chagla of the Bombay High Court said in his judgment, “The jurisdiction of this court under Section 34 of the Arbitration Act is very limited. The BCCI has tried to go into the substance of the main case, which is not permitted under Section 34. The BCCI’s dissatisfaction with the award on the evidence presented and the fundamental questions cannot in any way be a reasonable basis for setting aside the award.”
He further said, “The arbitrator’s decision that BCCI wrongly demanded the bank guarantee and that it amounted to a breach of the KCPL-FA agreement is the correct decision on the evidence. It is not open to interference by the court.”
However, BCCI does not have to pay compensation now. The organization has been given 3-6 weeks to appeal.
FAQ
What is the Kochi Tuskers Kerala dispute about?
The Kochi Tuskers Kerala was an IPL team terminated by the BCCI in 2011 for alleged contractual breaches. The franchise owners disputed this termination.
Why has BCCI been ordered to pay ₹538 crore?
The amount was awarded as compensation to the Kochi franchise owners after arbitration ruled that the termination was unlawful and unfair.
Who owns the Kochi Tuskers Kerala franchise?
The team was owned by a consortium called Rendezvous Sports World, which took legal action against the BCCI.
Who made the decision to order BCCI to pay this amount?
The order was issued by a court after the arbitration award went in favor of the Kochi Tuskers’ owners and was upheld by Indian courts.
Has the BCCI paid the ₹538 crore yet?
As of now, BCCI has been directed to pay, but whether it has already complied or plans to appeal is still unclear.
Why did BCCI terminate Kochi Tuskers Kerala from IPL?
BCCI claimed the franchise failed to provide a bank guarantee as per the franchise agreement, leading to its removal from IPL 2012.
