MUMBAI: The Board of Control for Cricket in India (BCCI) has been fined a hefty INR 5,390 million for terminating the Kochi Tuskers Kerala Indian Premier League (IPL) franchise in 2011.
The decision announced by the Bombay High Court on Tuesday directed the BCCI to pay INR 38.55 million to Kochi Cricket Private Limited (KCPL) and INR 15.384 million to Rendezvous Sports World (RSW).
Kochi Tuskers Kerala, owned by KCPL and RSW, made its IPL debut in 2011, finishing eighth among the ten teams. Following the franchise’s maiden season, BCCI terminated the team over allegedly breaching its terms of agreement.
The dispute revolved around the failure to provide a bank guarantee by the stipulated deadline.
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“The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited,” the court said in his order rejecting the BCCI’s challenge of the arbitrator’s award.
“BCCI’s endeavour to delve into the merits of the dispute is in teeth of the scope of the grounds contained in Section 34 of the Act. BCCI’s dissatisfaction as to the findings rendered in respect of the evidence and/or the merits cannot be a ground to assail the Award,” it added.
The court further stated that BCCI wrongfully invoked the bank guarantee.
“The conclusion of the learned Arbitrator namely that BCCI had wrongfully invoked the bank guarantee which amounted to a repudiatory breach of the KCPL-FA would call for no interference under Section 34 of the Arbitration Act considering that this is based on a correct appreciation of the evidence on record.”
Following the decision, the BCCI has been given six weeks to file an appeal against it.