BCCI vs Deccan Chargers: HC rejects arbitrator's order

The high court here, which had on Saturday stayed the status quo order of the arbitrator in the case between the Board of Control for Cricket in India (BCCI) and Deccan Chronicle Holdings Ltd (DHCL), quashed it on Thursday, saying an arbitrator could not overrule an order passed by the court.

The court-appointed arbitrator, retired Supreme Court judge C K Thakkar, had passed a status quo order just after the high court had refused to give another extension to the beleaguered DCHL to furnish a bank guarantee of Rs 100 crore to BCCI to revoke the termination of the IPL franchise Deccan Chargers team.

BCCI moved the court on a non-working Saturday, and got a stay on the status quo order by Justice R D Dhanuka, on an appeal filed under Section 37 of the Arbitration and Conciliation Act. Subsequently, BCCI also floated tender for a new IPL franchise to be selected from among 12 cities.

The case will now come up for final hearing before the high court on November 10.

Interestingly, DCHL claims that it has already got a buyer for the team in Mumbai-based real estate firm Kamla Landmarc. However, the termination of the franchise contract will mean the financial woes of the cash-strapped company will not resolve soon.

The case so far
The BCCI called an emergency IPL governing council meeting in Chennai and decided to terminate the contract of Deccan Charger, after the latter rejected the only bid for the team. However, DCHL, the promoter of the franchise, moved the Bombay High Court challenging the termination.

After hearing the counsels of bother the parties, the court asked DCHL to give an unconditional bank guarantee of Rs 100 crore to BCCI, if it wants to play in the next season of IPL within 10 days. The court also appointed an arbitrator and has given a three-month period to resolve the issue. Additionally, the court said that if DCHL fails to furnish the bank guarantee, the termination stands.

DCHL got the first extension for three days. However, when it once again asked for an extension in deadline to furnish the bank guarantee, the court rejected it. On the same day, DCHL announced that Kamla Landmarc has agreed to buy the team.