The Board of Control for Cricket in India (BCCI) has been instructed to pay INR 385.50 crore to Kochi Cricket Private Limited (KCPL) and INR 153.34 crore to Rendezvous Sports World (RSW). This directive stems from the termination of the Kochi Tuskers Kerala IPL franchise back in 2011. Nearly a decade and a half of legal wrangling culminated in the Bombay High Court upholding the 2015 arbitral awards against the BCCI on Tuesday.
The Kochi franchise, co-owned by KCPL and RSW, participated in a single Indian Premier League season in 2011, where they finished eighth out of ten teams. The BCCI terminated their agreement in September 2011, citing the franchise’s failure to furnish a bank guarantee within the specified timeframe. This termination led to arbitration proceedings.
Justice Riyaz I. Chagla of the Bombay High Court commented on the legal parameters, stating: “The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited.” He further noted that BCCI’s attempt to revisit the dispute’s merits was beyond the scope allowed under Section 34. He remarked, “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.”
Justice Chagla concluded that the decision of the arbitrator, finding the BCCI had wrongfully invoked the bank guarantee, was based on a solid evaluation of the evidence. Therefore, this did not warrant interference under Section 34. The BCCI now has six weeks to file an appeal against this decision.
The legal dispute highlights the complexities and challenges of managing multi-stakeholder sports agreements. As this saga unfolds, cricket fans and insiders alike will be keenly observing the next developments.
