The BCCI shocked Kochi Tuskers Kerala as Bombay HC rules for Rs 538 crore.

In what is a blow to the Board of Control for Cricket in India, the Bombay High Court has upheld arbitral awards of Rs 538 crore in favour of defunct IPL team Kochi Tuskers Kerala. The IPL franchise, which entered the competition in 2010, was terminated the very next year in 2011. The BCCI had challenged the arbitral tribunal’s 2015 ruling in which it awarded Rs 384 crore to Kochi Cricket Private Limited (KCPL) and the return of Rs 154 crore to Rendezvous Sports World (RSW).

Setback for BCCI in case against Kochi Tuskers Kerala

As per Bar and Bench, as single-judge bench comprising of Justice RI Chagla rejected the BCCI’s challenge, observing that the court cannot sit in appeal over the arbitrator’s findings. The HC further noted that 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 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 Court observed.

What is BCCI vs KTK all about?

KCPL, the body that operated the IPL franchise, was required to furnish a bank guarantee by March 2011. KCPL failed to do so, citing multiple issues including stadium unavailability, shareholding approvals, reduction in the number of IPL matches among other issues. As a result, Kochi Tuskers Kerala were terminated in September 2011.

The Bar and Bench report claims that Although BCCI continued to engage with KCPL for several months and accepted payments, it abruptly terminated the franchise and encashed a prior guarantee issued by RSW.

KTK’s RSW and KCPL initiated arbitration proceedings in 2012. In 2015, the tribunal ruled in their favour which was challenged by the BCCI.

“BCCI challenged the awards, arguing that the tribunal had acted beyond its powers and misapplied the law,” the report stated.