BCCI asked to pay Rs 538 cr in IPL's Kochi franchise case
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Mumbai, June 18 : The Board of Control for Cricket in India (BCCI) has suffered a setback as the Bombay High Court has upheld the arbitral accord to pay Rs 538 crore to the defunct Indian Premier League (IPL) franchise Kochi Tuskers Kerala.
The court has rejected BCCI's suit challenging the arbitral ruling in the long-standing IPL franchise controversy, which has been going on for over a decade. Despite multiple attempts, BCCI officials remained unavailable for comment on the matter.
The BCCI had terminated the Kochi franchise in 2011 after one season, accusing the team of a contract breach after failing to submit a bank guarantee on time, which was required under the agreement. The franchise was unable to make its payments to BCCI because of a falling out between the owners.
The matter went in for arbitration and in 2015, the BCCI was asked to pay Rs 538 crore -- 384 crore to KCPL and 153 crore to Rendezvous sport (owners of the Kochi franchise) -- to IPL franchise Kochi Tuskers after an arbitration ruled in favour of the team recently.
The BCCI was unhappy with the arbitral award and decided to challenge the tribunal's verdict in court.
On Wednesday, the court upheld the decision of the arbitrator.
"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," the Bombay High Court said in its ruling.
The franchise which was bought for a whopping Rs 1,550 crore in 2010 defaulted on their annual payment after which the Board of Control of Cricket in India (BCCI) terminated their contract in 2011. The franchise won the case against the BCCI and the court ordered the board to pay Rs 550 crore.
Kochi Tuskers Kerala participated in one season of IPL in 2012 and finished eighth among 10 teams.
The court has rejected BCCI's suit challenging the arbitral ruling in the long-standing IPL franchise controversy, which has been going on for over a decade. Despite multiple attempts, BCCI officials remained unavailable for comment on the matter.
The BCCI had terminated the Kochi franchise in 2011 after one season, accusing the team of a contract breach after failing to submit a bank guarantee on time, which was required under the agreement. The franchise was unable to make its payments to BCCI because of a falling out between the owners.
The matter went in for arbitration and in 2015, the BCCI was asked to pay Rs 538 crore -- 384 crore to KCPL and 153 crore to Rendezvous sport (owners of the Kochi franchise) -- to IPL franchise Kochi Tuskers after an arbitration ruled in favour of the team recently.
The BCCI was unhappy with the arbitral award and decided to challenge the tribunal's verdict in court.
On Wednesday, the court upheld the decision of the arbitrator.
"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," the Bombay High Court said in its ruling.
The franchise which was bought for a whopping Rs 1,550 crore in 2010 defaulted on their annual payment after which the Board of Control of Cricket in India (BCCI) terminated their contract in 2011. The franchise won the case against the BCCI and the court ordered the board to pay Rs 550 crore.
Kochi Tuskers Kerala participated in one season of IPL in 2012 and finished eighth among 10 teams.
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