The Board of Control for Cricket in India (BCCI) has been ordered to pay INR 385.50 crore to Kochi Cricket Private Limited (KCPL) and INR 153.34 crore to Rendezvous Sports World (RSW) for the cessation of the Kochi Tuskers Kerala in 2011. The Bombay High Court affirmed the arbitral verdicts against the BCCI from 2015.
Kochi Tuskers have only played one Indian Premier League (IPL) season in 2011 before being banned by the BCCI for allegedly breaching the franchise agreement. The BCCI stated that KCPL, which owns the franchise, failed to provide a bank guarantee on time as required by the contract.
However, Kochi Tuskers maintained that there were obstacles, such as stadium licenses and internal approvals, and that the BCCI had continued to receive funds and hold conversations long after the deadline had passed. In 2012, the issue was arbitrated, and Kochi Tuskers were awarded an outcome in 2015.
It directed the BCCI to pay INR 384 crore to KCPL and refund INR 153 crore to RSW, the firm that was first given the franchise. The BCCI filed a judicial appeal, claiming that the arbitrator exceeded their authority and committed legal mistakes in issuing the ruling.
Justice Riyaz I. Chagla said in his order, “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 conclusion of the learned Arbitrator namely that BCCI had wrongfully invoked the bank guarantee which amounted to a repudiatory breach of the KCPL-FA would call for no interference under Section 34 of the Arbitration Act considering that this is based on a correct appreciation of the evidence on record.”
This verdict is one of the most significant financial blows for the BCCI in IPL history, as it puts to light how Kochi Tuskers scandal was handled over a decade ago. The BCCI has been given six weeks to file its appeal.
