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BCCI relieved from paying INR 4816 crore to Deccan Chargers following Bombay HC order

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BCCI have won the legal battle against Deccan Chargers

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BCCI relieved from paying INR 4816 crore to Deccan Chargers following Bombay HC order

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SportsCafe Desk

06/17/2021

Board of Control for Cricket in India (BCCI) have won their legal battle against Deccan Chronicle Holdings Limited (DCHL) after the Bombay High Court set aside the arbitration award of INR 4816 crore over inconclusive evidence. The erstwhile franchise is likely to challenge the court's order.

The Board of Control for Cricket in India (BCCI) have won the legal battle against media company Deccan Chronicle Holdings Limited (DCHL), the promoters of now-defunct IPL franchise Deccan Chargers (DC) after the Bombay HC set aside the arbitration award of INR 4816 crore the franchise had won. 

The 2009 IPL champions had won the award by an arbitration process initiated by the Bombay HC after the franchise had challenged the termination of their contract in 2012. Justice GS Patel ruled that there was not much evidence that DC wasn’t in breach of their contract during the termination. 

According to BCCI, the termination happened because the franchise failed to pay the players their salaries and other irregularities in their functioning. 

The Bombay HC had appointed retired Supreme Court Judge CK Thakkar as the sole arbitrator. Thakkar found the termination of the Chargers contract both illegal and premature, and awarded the damage based on - among other things - a projected loss in profits over the span of the IPL because of the termination.

The BCCI was represented by Tushar Mehta, India's solicitor general,  who challenged the award in court. Justice GS Patel found that "the Award proceeded in places without reasons, in others by ignoring evidence, in yet others by wandering far afield from the contract, and in taking views that were not even possible."

"We did not agree with the arbitration penalty and welcome the verdict from the honourable court," BCCI secretary Jay Shah was quoted as saying by Hindustan Times. "This comes on the back of our legal win in the WSG case,” Shah added. 

Deccan Chargers are likely to challenge the court’s order. "The high court has set aside the arbitral tribunal's award which means that the BCCI will not be liable to pay INR 4800 crore," said Ashish Pyasi, associate partner Dhir & Dhir Associates, who has represented Deccan Chargers in the past. "The order passed is appealable and can be challenged in the division bench (of the Bombay High Court) under section 37."

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