MUMBAI (Diya TV) — The Bombay High Court has delivered a major blow to the Board of Control for Cricket in India (BCCI). The court upheld a 2015 arbitral award that directs the BCCI to pay over Rs 538 crore (more than $62 million) to the now-defunct Indian Premier League (IPL) team Kochi Tuskers Kerala.
This decision ends a decade-long legal battle between BCCI and the Kochi franchise. The High Court dismissed two petitions filed by the BCCI challenging the arbitration verdict, stating that the cricket board failed to show valid grounds for overturning the award.
The dispute dates back to 2011, when the BCCI terminated its contract with Kochi Tuskers Kerala after just one IPL season. The board claimed that the franchise had failed to provide a required bank guarantee on time. Kochi Tuskers, owned by Kochi Cricket Private Limited (KCPL) and Rendezvous Sports World (RSW), had won the IPL bid in 2010 for Rs 1,550 crore. RSW submitted a bank guarantee of Rs 153.34 crore (more than $17 million), and later, the agreement was transferred to KCPL.
However, BCCI terminated the franchise agreement in September 2011, citing non-compliance with the bank guarantee requirement. The team played only in the 2011 IPL season, finishing eighth out of ten teams. In response, the owners of Kochi Tuskers initiated arbitration proceedings in 2012.
In 2015, the arbitration tribunal ruled in favor of the franchise. The tribunal directed BCCI to pay Rs 385.5 crore (more than $44 million) to KCPL and Rs 153.34 crore (more than $17 million) to RSW. It also awarded 18% annual interest on both amounts from the date of termination.
BCCI, dissatisfied with the ruling, challenged the award in the Bombay High Court. The cricket board argued that the arbitrator had ignored key contract clauses, including those involving deadlines and terms of performance. Justice R.I. Chagla of the Bombay High Court rejected BCCI’s arguments and upheld the arbitral award. He stated that the court’s role under Section 34 of the Arbitration and Conciliation Act is limited.
“BCCI’s attempt to question the merits of the arbitration decision goes beyond the scope of judicial review,” said Justice Chagla. He emphasized that the arbitrator’s interpretation of the evidence and contract terms was sound. The court found no “patent illegality” in the 2015 arbitration order. It also noted that BCCI had wrongfully invoked the bank guarantee, which amounted to a repudiatory breach of contract.
While dismissing the petitions, the High Court granted BCCI two weeks to file an appeal against the decision. The court also extended the time for Kochi Tuskers Kerala to begin recovering the awarded amount. The arbitral award had been under a conditional stay for several years while the case moved through the courts.
This judgment marks a major setback for the BCCI, which had been fighting the arbitration outcome for nearly 10 years. The ruling may also have financial implications for the board, which will now have to pay hefty compensation along with interest. BCCI officials have not issued any public statements following the ruling.
The Kochi Tuskers Kerala saga highlights long-standing governance and contract issues in the IPL’s early years. The outcome could also set a precedent for how disputes between sports governing bodies and franchise owners are handled in the future. The Bombay High Court’s decision to uphold the arbitration award signals a strong affirmation of arbitration in commercial disputes. With the BCCI given only two weeks to appeal, the window for further legal challenge is narrow.
