In a significant setback to the Board of Control for Cricket in India (BCCI), the Bombay High Court has upheld arbitral awards, directing BCCI to pay ₹385.50 crore to Kochi Cricket Private Limited (KCPL) and ₹153.34 crore to Rendezvous Sports World (RSW) in reference to the Kochi IPL (Indian Premier League) franchise. An in depth order was made out there on June 17, 2025 within the night.
Kochi Tuskers had participated within the 2011 season of IPL however was terminated by the BCCI the next yr after allegations of breach of the franchise settlement.
A Single-Bench decide, Justice Riyaz I. Chagla, rejected BCCI’s problem to the arbitral awards, ruling that the Court couldn’t sit and act as an appellate authority over the arbitrator’s findings.
In a 107-page order, Justice Chagla noticed, “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 order additional stated that it’s not open for this Court to revisit the findings of info arrived at by the Arbitral Tribunal after the appreciation of proof and paperwork on document or to intervene with the award on the bottom that the phrases of the contract weren’t accurately interpreted by the realized Arbitrator.
“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 court docket famous.
On September 19, 2011, BCCI terminated its franchise agreements with RSW and KCPL over their failure to ship the requisite financial institution ensures on or earlier than March 22 and 27, 2011, contemplated beneath the agreements, after each invoked arbitration clauses.
On January 18, 2012, KCPL addressed a letter to BCCI, alleging that the termination of the KCPL settlement by BCCI was wrongful and invoked arbitration beneath the dispute decision clause of the KCPL settlement.
In KCPL arbitration, the realized arbitrator handed an award on June 22, 2015, dismissing BCCI’s counter-claim, and directing BCCI to pay to KCPL ₹384,83,71,842 with curiosity on the stated quantity at 18% from September 19, 2011, until the date of the award. The order additional directed BCCI to pay ₹72,00,000 by the use of arbitration prices with additional curiosity at 18% on the awarded quantity from the date of award to the date of its realisation.
In RSW arbitration, the realized arbitrator handed an award on the identical date, and directed the cricket controlling physique to pay RSW an quantity of ₹1,53,34,00,000 along with curiosity on the price of 18% every year.
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BCCI challenged the KCPL and RSW award on September 16, 2015, and filed an arbitration petition beneath Section 34 of the Arbitration and Conciliation Act, 1996 earlier than the Bombay High Court. BCCI argued that arguing that the tribunal had acted past its powers and misapplied the legislation. It additionally contended that KCPL’s failure to submit the financial institution assure was a basic breach of the settlement, justifying termination. BCCI objected to the award of each lack of earnings and wasted expenditure, arguing that the damages have been extreme and exceeded the contractual cap and challenged the validity of RSW’s arbitration declare beneath the Indian Partnership Act.
KCPL and RSW contended that the BCCI had waived the assured deadline by way of its conduct, and the termination was neither justified nor proportionate. They maintained that the arbitrator had utilized settled authorized rules to award damages for a misplaced enterprise alternative and funding already made.
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Finding no grounds to intervene with the arbitral findings, the court docket famous, “Thus, based on these material facts and documents on record, the finding of the learned Arbitrator that BCCI waived the requirement under Clause 8.4 of the KCPL-FA for furnishment of bank guarantee for 2012 season on or before 22nd March, 2011 cannot be faulted.”
“There is no patent illegality in the impugned awards which requires interference by this Court. In view thereof, the Arbitration petitions are devoid of merit and are accordingly dismissed,” the court docket stated, allowing KCPL and RSW to withdraw the quantities deposited and granted BCCI six weeks’ time to file an enchantment.
Published – June 18, 2025 03:03 pm IST
