HC dismisses HCA's appeal over arbitral award to Visaka Industries
Telangana High Court had dismissed an appeal filed by Hyderabad Cricket Association challenging an arbitral award of ₹25.92 crore passed by local Commercial Court in favour of Vishaka Industries.
A bench of Justices Moushumi Bhattacharya and B.R. Madhusudhan Rao said that the HCA failed to make out any grounds for interference in the impugned order passed by the Commercial Court in 2024. 'In short, the HCA exposed its unsportsmanlike colours and whatever game it may have played, it was certainly not ticket in the fairest sense of the term', the two judges said in the order.
The dispute between HCA and M/s Visaka Industries arose over an agreement they had entered in 2004. As per the agreement, Visaka Industries rights for in-stadia advertisement rights for the construction of an international cricket stadium at Uppal Kancha in Hyderabad. Before conducting IPL matches in 2008, the HCA wrote to Visaka expressing its inability to honour its obligations as per the 2004 agreement, stating that it was not binding on the BCCI-IPL arrangement. Visaka moved the lower court to restrain HCA from denying in-stadia ad rights to it during IPL matches. While the litigation prolonged, the HCA wrote a letter to Visaka in 2011 stating that it had terminated the 2004 agreement on the ground of impossibility of performance.
Finally, an arbitral award of ₹25.92 crore was made to Visaka in 2016. The same was challenged by HCA in the Commercial Court, which dismissed it. The HCA filed the present appeal against the Commercial Court order. The bench held that even in the present appeal, the HCA never inclined to provide statutory security for stay of the award but tested its luck at all levels only get an unfair and short-lived edge over Visaka', the verdict said.
(eom)
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