Court asks BCCI to pay INR 539 crore over Kochi Tuskers Kerala termination issue

The BCCI has been directed to pay INR 385.50 crore to Kochi Cricket Private Limited (KCPL) and INR 153.34 crore to Rendezvous Sports World (RSW) over the termination of the Kochi Tuskers Kerala IPL franchise in 2011. The Bombay High Court on Tuesday upheld the arbitral awards made against the BCCI in 2015.

The Kochi franchise, which was owned by KCPL and RSW, played one season of the IPL in 2011, finishing eighth among the ten teams. In September 2011, the BCCI terminated the franchise for allegedly breaching its terms of agreement by failing to provide a bank guarantee by the stipulated deadline, following which both parties were involved in arbitration proceedings.

"The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited," Justice Riyaz I. Chagla said in his order rejecting the BCCI's challenge of the arbitrator's award. "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."

The BCCI has been granted six weeks to file an appeal.