BOMBAY HC SETS ASIDE AN ORDER DIRECTING BCCI TO PAY RS 48 CRORE TO DECCAN CHARGES OVER THE TERMINATION DISPUTE

Background

In 2012, BCCI served a notice to DCHL terminating the Franchise agreement on the ground that the franchisee breached the BCCI code. Although the termination was stayed by the Bombay HC, it was made final when DCHL failed to submit a bank guarantee of Rs 100 Cr. Thereafter, DCHL initiated an arbitration proceeding against the BCCI with a sole arbitrator (Retired SC justice CK Thakkar) appointed by the HC.

At Present - 

The Bombay HC set aside the award passed by the sole arbitrator in the Board of Control for Cricket in India case. BCCI was directed to pay Rs 4,800 crores to Deccan Chronicle Holdings Ltd (DCHL) over the allegedly illegal termination of their Indian Premier League (IPL) franchise team from IPL.

The Sole arbitrator appointed by the HC in 2012 awarded a compensation of Rs 4,800 crores to DCHL with 10% interest from 2012. BCCI challenged the July 2020 award before the Bombay HC.

Author: Papiha Ghoshal