Setback for BCCI – Bombay High Court orders payment of ₹538 crore to Kochi Tuskers
Mumbai: The Bombay High Court has upheld the report of the arbitrator and ordered the Board of Control for Cricket in India (BCCI) to pay ₹538 crore to the former Indian Premier League (IPL) franchise Kochi Tuskers Kerala.
The dispute dates back to 2011, when BCCI terminated the contract of Kochi Tuskers, a franchise it had awarded for ₹1,550 crore. BCCI had challenged the arbitration tribunal’s award that directed it to pay ₹538 crore to the franchise, but the High Court has now dismissed BCCI’s petition.
On Tuesday, Justice R. Chagla ruled that,
“There is no illegality in the arbitrator’s award, particularly with respect to patent law, and there is no need for court intervention in this matter.”
He therefore ordered BCCI to pay the awarded amount to Kochi Tuskers.
Background of the Dispute:
In 2011, BCCI had granted the franchise to a group led by Kochi Cricket Pvt. Ltd. (KCPL) and Rendezvous Sports World (RSW).
However, the contract was terminated the following year, with BCCI citing that KCPL and RSW had allegedly failed to provide the required bank guarantees on time.
In 2012, KCPL and RSW contested the termination, claiming it was unjustified.
In 2015, an arbitral tribunal ruled in favor of Kochi Tuskers, directing BCCI to pay:
₹384.8 crore to KCPL
₹153.3 crore to RSW
(Including interest and legal costs)
Now, with the Bombay High Court’s verdict, BCCI is legally bound to make this payment.