MUMBAI: In a setback for the Board of Control for Cricket in India (BCCI), the Bombay High Court on Tuesday refused to interfere with two arbitration awards, directing the cricket controlling body to pay ₹385.50 crore to Kochi Cricket Private Ltd (KCPL) and ₹153.34 crore to Rendezvous Sports World (RSW) in connection with the Kochi IPL (Indian Premier League) franchise.
A single judge bench of Justice Riyaz Chagla rejected two arbitration petitions challenging separate arbitration awards passed in connection with franchise agreements executed with RSW in April 2010 and in March 2011 with KCPL – a joint venture between BCCI and RSW. Both the arbitral awards were passed on June 22, 2015.
On September 19, 2011, BCCI terminated its franchise agreements with RSW and KCPL over non-furnishing of requisite bank guarantees contemplated under the agreements, after both invoked arbitration clauses.
The arbitrator ruled in favour of the franchise owner and the joint venture, and directed the cricket controlling body to pay ₹385.50 crore to KCPL and ₹153.34 crore to RSW along with interest at the rate of 18% per annum.
The BCCI challenged the award before the high court, contending that the arbitral award suffered from several errors apparent on the face of the record, misapplication of legal principles, and findings unsupported by evidence, warranting its setting aside under Section 34 of the Arbitration Act.
TN Subramanian, senior counsel, appearing for the BCCI in one of the petitions, submitted that the impugned award having been passed in the arbitral proceedings commenced pursuant to the defective notice invoking arbitration, and hence cannot be sustained and ought to be set aside by the court.
Senior counsel Vikram Nankani, appearing for RSW and KCPL argued that the BCCI’s move of terminating the agreement was mala fide and that the arbitral award did not require interference by the court.
“There is no patent illegality in the impugned awards which requires any interference by this court,” the high court observed while dismissing BCCI’s petitions.
KCPL and RSW have been permitted to withdraw the sums deposited by the BCCI after a period of six weeks from the order on Tuesday, on the request of BCCI’s senior counsel Rafiq Dada, to allow the cricket body time to file an appeal against the high court’s ruling.
BCCI officials were not available for comment. Secretary Devajit Saikia did not respond to HT’S query on whether BCCI intends to contest the ruling.