Aggrieved company files appeal against BCCI's decision

A Mumbai-based company has filed an appeal against a High Court order refusing to stay the decision of the Board to award a three-year contract for clothing sponsorship of Indian team in international matches to International Management Group and Transworld International combine (IMG-TWI).

The appeal was filed by proprietor of Gayatri Arts Sham Dhumatkar yesterday in the Mumbai High Court and is likely to be heard within a week. Gayatri Arts had challenged BCCI's decision to award contract to IMG-TWI by way of a petition in the High Court. The company claimed that it had made the highest bid of Rs 90 crore through a legal tender advertised by BCCI in a newspaper. Yet, the contract was awarded to IMG-TWI combine.

Justice D K Deshmukh, hearing the petition, had, in an ad-interim order, refused to stay BCCI's decision. Gayatri Arts filed an appeal contending that the Judge had failed to take cognizance of the bid made by it which was higher than the one put up by IMG-TWI. Hence the award of contract to IMG-TWI was bad in law, improper and unjustified.

Gayatri Arts submitted that BCCI had confirmed the contract in a letter on May 3 and gave 48 hours notice to accept the offer. Accordingly, Gayatri Arts accepted the contract offer in a letter to BCCI, the court was told.

On May 22, however, BCCI's marketing committee held a second meeting in New Delhi where the contract awarded to Gayatri Arts was resiled and instead awarded to IMG-TWI after an open bidding and revelation of prices.

Gayatri Arts claimed that the contract was complete after BCCI wrote a letter to them making the offer of contract and the company accepting it in writing. BCCI, on the other hand, claimed that its communication to Gayatri Arts was not a confirmation letter of contract but a mere 'query'.