In a significant development, the Bombay High Court has upheld an arbitral award of over ₹538 crore in favor of the now-defunct Indian Premier League (IPL) franchise Kochi Tuskers Kerala. The court dismissed BCCI's challenge regarding the franchise's termination, marking the end of a long-standing dispute.
The ruling, issued on Tuesday, comes after a fourteen-year legal battle over the abrupt termination of the Kochi IPL team from the league. Justice R.I. Chagla, sitting as a single-judge bench, rejected BCCI's objections to the award, emphasizing that the court could not re-examine the conclusions reached by the arbitral tribunal.
The court noted, "BCCI's dissatisfaction with the findings related to the evidence and merits cannot serve as a basis to challenge the award." It further stated that the arbitrator's determination of BCCI's termination of the Kochi franchise as a repudiatory breach of contract was sound and based on a correct evaluation of the evidence.
Additionally, the court ruled that BCCI's acceptance of payments from the franchise and its ongoing dealings with them waived the requirement for a fresh bank guarantee by the March 2011 deadline. The objections raised under the Indian Partnership Act were also dismissed, affirming the validity of the arbitration proceedings initiated by Kochi Tuskers Kerala co-owner Rendezvous Sports World (RSW).
The court allowed Kochi Cricket Pvt. Ltd (KCPL) and RSW to withdraw ₹100 crore deposited earlier by BCCI, citing no jurisdictional errors or patent illegality in the case. BCCI has been given six weeks to file an appeal, which is likely to be directed to the division bench of the high court or the Supreme Court.
Origin of the Dispute
The Kochi IPL franchise was established in 2010 for ₹1,550 crore, with payments spread over a decade. However, the team, supported by a consortium led by RSW and operated by KCPL, participated in only the 2011 season. Ownership was divided among various entities, including Anchor Earth Pvt. Ltd., Parinee Developers Pvt. Ltd., and others.
In 2011, the franchise failed to provide a new bank guarantee as required, leading to its termination by BCCI. RSW and KCPL initiated arbitration proceedings, contending that the termination was unjustified and that BCCI's actions indicated a willingness to continue working with the franchise despite the guarantee issue.
In 2015, a tribunal headed by former Supreme Court Chief Justice R.C. Lahoti ruled in favor of the franchise, awarding compensation and directing BCCI to return funds to RSW. BCCI challenged the decision, leading to a series of legal battles that culminated in the recent High Court ruling.
Other IPL Franchise Disputes
The Kochi case is one of several legal disputes involving terminated IPL franchises. In 2012, the Deccan Chargers were terminated by BCCI, resulting in a significant arbitration award that was later set aside by the Bombay High Court. The termination of Pune Warriors India in 2013 also led to legal challenges.
IPL's Commercial Growth
Despite these legal challenges, the IPL's brand value continues to rise. Recent reports indicate a substantial increase in the league's cumulative brand worth, reflecting its growing commercial strength in the global sports market.
Source: Mint
