IPL: Bombay HC quashes ₹8,000 cr Deccan Chargers arbitration ruling against BCCI

BCCI had been directed by the arbitration panel to pay the massive sum to the ex-IPL team it terminated in 2012

The Bombay high court has set aside the arbitration verdict in favour of Deccan Chargers, the former IPL champions terminated in 2012, that directed the Indian cricket board to pay the team owners more than ₹8,000 crore ( ₹4,800 crore plus taxes). The order comes as relief to BCCI, which has been fighting a series of legal cases following past decisions.

The Bombay High Court has set aside the arbitration verdict in favour of Deccan Chargers that directed BCCI to pay the team owners more than ₹8,000 crore. (REUTERS)

“We did not agree with the arbitration penalty and welcome the verdict from the honourable court,” BCCI secretary Jay Shah said. “This comes on the back of our legal win in the WSG case,” Solicitor General of India Tushar Mehta represented BCCI in this matter.

A single bench of the court has directed BCCI to pay ₹34 crore plus taxes, an amount due to Deccan Chargers, the 2009 IPL winners. BCCI had withheld this amount hoping for it to be adjusted from the balance of the franchise fee Deccan had to pay.

“The high court has set aside the arbitral tribunal’s award which means that the BCCI will not be liable to pay ₹4,800 crore. The order passed is appealable and therefore can be challenged in an appeal,” said Ashish Pyasi, associate partner Dhir & Dhir Associates, who has represented Deccan Chargers in the past.

BCCI terminated the franchise agreement with Deccan Chronicle Holdings Limited (DCHL), owners of Deccan Chargers, by a written notice on September 14, 2012. It had charged the Hyderabad team with failure to clear players’ dues, saying it had an adverse effect on IPL’s reputation.

The court had granted interim stay of the termination, asking DCHL to furnish an irrevocable and unconditional bank guarantee of ₹100 crore. When DC failed to pay up by the deadline, the stay was vacated and the termination came into effect on October 12, 2012.

BCCI then sold the Hyderabad franchise to Sunrisers Hyderabad for ₹425 crore ( ₹85 crore/year) through an auction. DC, one of the original eight franchises when IPL was launched in 2008, had joined the league paying $107 million (10 years). They won the title in South Africa under Adam Gilchrist.

Last July, an arbitration tribunal had found the termination “premature and illegal”, directing BCCI to pay up the huge sum, which was the perceived valuation of the team if it existed then.