Relief for BCCI, HC sets aside order to pay ₹4,800 Cr to DCHL

A single-judge bench of justice Gautam Patel heard the appeal by the BCCI against the July 2020 order of the sole arbitrator, who was appointed in 2012 to ascertain whether BCCI’s termination notice to Deccan Chargers was illegal

The Bombay high court on Wednesday set aside an order which directed the Board of Control for Cricket in India (BCCI) to pay ₹4,800 crore to Deccan Chronicle Holding Ltd (DCHL) in lieu of the termination of the Deccan Chargers team franchise in the Indian Premier League (IPL).

The Bombay high court. (File photo)

The July 2020 order by an arbitrator had been challenged by the BCCI on the grounds that the conclusion that the termination was illegal was based on wrong contractual and perverse interpretation of the contract and the method of computation to arrive at the figure was not mentioned in the order.

A single-judge bench of justice Gautam Patel heard the appeal by the BCCI against the July 2020 order of the sole arbitrator, who was appointed in 2012 to ascertain whether BCCI’s termination notice to Deccan Chargers was illegal.

Solicitor general Tushar Mehta, who appeared for BCCI, told the court that the condition of the contract for payment to players, support staff, etc had been substantially complied with, but the tribunal proceeded contrary to the facts while declaring termination to be bad.

In 2012, after DCHL was declared a successful bidder for the Deccan Chargers team franchise. An agreement was drawn between DCHL and BCCI for 10 years. In August 2012, the BCCI issued a show-cause notice for termination to DCHL. The termination was confirmed a day before the expiry of the 30-day period granted to respond to the notice.

DCHL approached the high court and sought compensation as per the contract clauses. In September 2012, the court appointed retired Supreme Court justice C K Thakker as the sole arbitrator.

In July 2020, justice Thakker passed the award in favour of DHCL directing BCCI to pay ₹4800 crore plus interest and held the termination of franchise illegal. The amount included damages of over ₹600 crore and compensation of nearly ₹4150 crore. Thereafter, BCCI challenged the order.