bcci as bombay highcourt dismisses petition against kochi tuskers in 538 crore

The BCCI has suffered a major setback from the Bombay High Court in the Kochi Tuskers case. The High Court has dismissed the BCCI petition. The court termed the Arbitral Award of Rs 538 crore in favor of the owners of Kochi Tuskers. The BCCI dropped the Kochi Tuskers team out of the IPL in 2011. The Kochi team then filed an arbitration case against the BCCI. The franchise played in just one IPL season and was eighth in the points table.

Judge RI Chagla said in BCCI and Kochi Cricket Private Limited and other cases that the court cannot act as an appellate authority on the conclusions of the mediator. The court said that the jurisdiction of this court is very limited under Section 34 of the Arbitration Act. The BCCI’s effort to investigate the properties of the dispute in depth is the opposite of the scope of the grounds inherent in Section 34 of the Act. The BCCI’s dissatisfaction with the conclusions given in relation to evidence and/or virtue-defects cannot be the basis for challenging the Award.

The Kochi Tuskers franchise was taken by the Randagewas Sports World. The franchise was later run by Kochi Cricket Private Limited. The BCCI abolished the Kochi tuskers in September 2011 citing violations of the franchise agreement. The BCCI said the franchise bank had failed to give a guarantee. At the same time, KCPPL said the delay was due to unresolved issues, including unavailability of stade, regulatory approval on shareholding and decrease in the number of IPL matches.

BCCI and KCPL were in touch for several months amid delay. The board also accepted several payments. But suddenly the BCCI abolished the franchise and also redeemed the former guarantee issued by RSW. KCPL and RSW initiated arbitration proceedings in 2012 and the tribunal ruled in their favor in 2015. KCPPL was ordered Rs 384 crore and Rs 153 crore to RSW. Along with this, there was also mention of giving interest and legal cost.