Latest news with #JusticeR.I.Chagla
Mint
3 hours ago
- Business
- Mint
Bombay High Court upholds ₹538 cr award to defunct Kochi IPL franchise against BCCI
In a major blow to the Board of Control for Cricket in India (BCCI), the Bombay High Court has upheld an arbitral award of over ₹ 538 crore in favour of the now-defunct Indian Premier League (IPL) franchise Kochi Tuskers Kerala. The ruling passed on Tuesday (17 June) comes in a long-standing dispute over the team's abrupt termination from the Indian Premier League fourteen years ago. A single-judge bench of Justice R.I. Chagla dismissed BCCI's challenge to the award, ruling that the court could not re-examine the merits of the arbitral tribunal's conclusions. '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 court observed. 'The arbitrator's conclusion that the BCCI's termination of the Kochi franchise was a repudiatory breach of contract would call for no interference… this is based on a correct appreciation of the evidence on record.' The court further held that BCCI, by continuing to deal with the franchise and accepting payments, had effectively waived the strict requirement for furnishing a fresh bank guarantee by the March 2011 deadline. It also dismissed BCCI's objections under the Indian Partnership Act and upheld the validity of arbitration proceedings initiated by Kochi Tuskers Kerala co-owner Rendezvous Sports World (RSW). Finding no patent illegality or jurisdictional error, the court allowed Kochi Cricket Pvt. Ltd (KCPL) and RSW to withdraw ₹ 100 crore deposited earlier by BCCI. The cricketing body has been granted six weeks to file an appeal, likely before the division bench of the high court or the Supreme Court. The Kochi IPL franchise was awarded in 2010 for ₹ 1,550 crore, with payments scheduled over a 10-year period. But the team, backed by a consortium led by RSW and operated by KCPL, played only the 2011 season. Its ownership included Anchor Earth Pvt. Ltd. (31.45%), Parinee Developers Pvt. Ltd. (30.27%), Rendezvous Sports World (10%), Anand Shyam Estates (9.31%), and Vivek Venugopal (5%). In 2011, the franchise failed to furnish a fresh 10% bank guarantee of around ₹ 156 crore for the upcoming season, citing internal ownership disputes, venue availability concerns, and regulatory delays. BCCI, while invoking an existing ₹ 153 crore guarantee, demanded a new one within six months. In September 2011, BCCI terminated the franchise agreement and encashed the earlier guarantee. RSW and KCPL initiated arbitration proceedings in 2012, arguing that the termination was wrongful and that BCCI's conduct showed a continued willingness to work with the franchise despite the guarantee delay. In 2015, a tribunal led by former Supreme Court Chief Justice R.C. Lahoti ruled in favour of the franchise, awarding ₹ 384 crore to KCPL as compensation for loss of profits and directing BCCI to return ₹ 153 crore to RSW with interest and costs. BCCI challenged the award in the Bombay High Court, arguing that the tribunal had exceeded its jurisdiction and had awarded excessive damages in violation of contractual limits. It also questioned the locus of RSW under the Partnership Act. In 2018, the High Court granted a temporary stay on the award, prompting the Kochi franchise to approach the Supreme Court, which directed BCCI to deposit ₹ 100 crore as a condition for continued stay. With Tuesday's ruling, the Bombay High Court has now upheld the award, leaving BCCI with the option of challenging the decision. The Kochi case is one among several high-stakes legal battles involving terminated IPL franchises. In 2012, BCCI terminated the Deccan Chargers over financial defaults. An arbitrator later awarded the team ₹ 4,814 crore for wrongful termination. However, the Bombay High Court set aside the award in 2021, capping BCCI's liability at ₹ 34 crore plus interest. Similarly, Pune Warriors India, owned by Sahara Adventure Sports, was terminated in 2013 after failing to submit a ₹ 170.2 crore bank guarantee. That matter also led to legal proceedings. Despite these setbacks, IPL continues to grow in commercial strength. According to the Brand Finance IPL 2024 valuation report, the league's cumulative brand value rose 13% to $12 billion. From a $2 billion valuation in 2009, it crossed the $10 billion mark in 2023.
Mint
6 hours ago
- Business
- Mint
Bombay High Court upholds ₹538 cr award to defunct Kochi IPL franchise against BCCI
In a major blow to the Board of Control for Cricket in India (BCCI), the Bombay High Court has upheld an arbitral award of over ₹ 538 crore in favour of the now-defunct Indian Premier League (IPL) franchise Kochi Tuskers Kerala. The ruling passed on Tuesday (17 June) comes in a long-standing dispute over the team's abrupt termination from the Indian Premier League fourteen years ago. A single-judge bench of Justice R.I. Chagla dismissed BCCI's challenge to the award, ruling that the court could not re-examine the merits of the arbitral tribunal's conclusions. '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 court observed. 'The arbitrator's conclusion that the BCCI's termination of the Kochi franchise was a repudiatory breach of contract would call for no interference… this is based on a correct appreciation of the evidence on record.' The court further held that BCCI, by continuing to deal with the franchise and accepting payments, had effectively waived the strict requirement for furnishing a fresh bank guarantee by the March 2011 deadline. It also dismissed BCCI's objections under the Indian Partnership Act and upheld the validity of arbitration proceedings initiated by Kochi Tuskers Kerala co-owner Rendezvous Sports World (RSW). Finding no patent illegality or jurisdictional error, the court allowed Kochi Cricket Pvt. Ltd (KCPL) and RSW to withdraw ₹ 100 crore deposited earlier by BCCI. The cricketing body has been granted six weeks to file an appeal, likely before the division bench of the high court or the Supreme Court. The Kochi IPL franchise was awarded in 2010 for ₹ 1,550 crore, with payments scheduled over a 10-year period. But the team, backed by a consortium led by RSW and operated by KCPL, played only the 2011 season. Its ownership included Anchor Earth Pvt. Ltd. (31.45%), Parinee Developers Pvt. Ltd. (30.27%), Rendezvous Sports World (10%), Anand Shyam Estates (9.31%), and Vivek Venugopal (5%). In 2011, the franchise failed to furnish a fresh 10% bank guarantee of around ₹ 156 crore for the upcoming season, citing internal ownership disputes, venue availability concerns, and regulatory delays. BCCI, while invoking an existing ₹ 153 crore guarantee, demanded a new one within six months. In September 2011, BCCI terminated the franchise agreement and encashed the earlier guarantee. RSW and KCPL initiated arbitration proceedings in 2012, arguing that the termination was wrongful and that BCCI's conduct showed a continued willingness to work with the franchise despite the guarantee delay. In 2015, a tribunal led by former Supreme Court Chief Justice R.C. Lahoti ruled in favour of the franchise, awarding ₹ 384 crore to KCPL as compensation for loss of profits and directing BCCI to return ₹ 153 crore to RSW with interest and costs. BCCI challenged the award in the Bombay High Court, arguing that the tribunal had exceeded its jurisdiction and had awarded excessive damages in violation of contractual limits. It also questioned the locus of RSW under the Partnership Act. In 2018, the High Court granted a temporary stay on the award, prompting the Kochi franchise to approach the Supreme Court, which directed BCCI to deposit ₹ 100 crore as a condition for continued stay. With Tuesday's ruling, the Bombay High Court has now upheld the award, leaving BCCI with the option of challenging the decision. The Kochi case is one among several high-stakes legal battles involving terminated IPL franchises. In 2012, BCCI terminated the Deccan Chargers over financial defaults. An arbitrator later awarded the team ₹ 4,814 crore for wrongful termination. However, the Bombay High Court set aside the award in 2021, capping BCCI's liability at ₹ 34 crore plus interest. Similarly, Pune Warriors India, owned by Sahara Adventure Sports, was terminated in 2013 after failing to submit a ₹ 170.2 crore bank guarantee. That matter also led to legal proceedings. Despite these setbacks, IPL continues to grow in commercial strength. According to the Brand Finance IPL 2024 valuation report, the league's cumulative brand value rose 13% to $12 billion. From a $2 billion valuation in 2009, it crossed the $10 billion mark in 2023. The $16 billion IPL, which was started in 2007, is the world's biggest T20 cricket league and the world's second-largest sports league, behind the US's century-old National Football League (NFL).
Hindustan Times
9 hours ago
- Business
- Hindustan Times
BCCI suffer massive setback as court dismisses petition against Kochi Tuskers in ₹538 cr arbitral awards case
The BCCI were dealt a massive setback on Tuesday, as the Bombay High Court upheld arbitral awards exceeding ₹538 crore in favour of the owners of now-defunct IPL franchise Kochi Tuskers. A single judge (Justice R.I. Chagla) presided on the BCCI vs Kochi Cricket Private Limited and others case, and dismissed the Indian cricket body's challenge to the arbitral awards. The judge ruled that the court could not act as an appellate authority over the arbitrator's findings. The court observed, '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 Kochi Tuskers franchise was first given to a consortium led by Rendezvous Sports World (RSW), and then it was later operated by Kochi Cricket Private Limited (KCPL). The team participated in only one season (IPL 2011), then the BCCI terminated the franchise in September 2011, due to a breach of franchise agreement, citing failure to furnish a 10 percent bank guarantee. It was also reported that there was also many internal disputes between owners. Meanwhile, the KCPL stated that the delay was due to unresolved problems, which consisted of stadium unavailability, regulatory approvals on shareholding and also a reduction in the number of IPL games. Amid the delay, the BCCI and KCPL were in contact for many months, with the Indian cricket body also accepting various payments. But then suddenlu, the BCCI terminated the franchise, and also encashed a prior guarantee issued by RSW Both KCPL and RSW initiated arbitration proceedings in 2012, and the tribunal ruled in their favour in 2015. It awarded ₹384 crore to KCPL for loss of profits and RS 153 crore to RSW for wrongful encashment of the bank guarantee, and also alongwith interest and legal costs. The BCCI contested the tribunal's decision, and stated that it exceeded its jurisdiction and misapplied legal principles. Also, according to the BCCI, KCPL's failure to give the bank guarantee was a fundamental breach, justifying termination. It also contested the award of both loss of profist and wasted expenditure, citing that the damages were excessive and in breach of the contract. RSW's arbitration claim was also challenged under the Indian Partnership Act. The KCPL and RSW argued that BCCI had waived the guarantee deadline effectively, which made the termination unjustified. The court found no grounds to interfere with the arbitral findings, and stated, 'The arbitrator's conclusion that the BCCI's termination of the Kochi franchise was a repudiatory breach of contract would call for no interference under Section 34 of the Arbitration Act.' The court also added, 'Thus, based on these material facts and documents on record, the finding of the learned Arbitrator that BCCI waived the requirement under Clause 8.4 of the KCPL-FA for furnishment of bank guarantee for 2012 season on or before 22nd March, 2011 cannot be faulted.'
