Termination of Kings XI Punjab from IPL averted by Bombay HC

The Bombay high court on Wednesday upheld a stay order on the termination of Kings XI Punjab from the Indian Premier League (IPL) by the Board of Control for Cricket in India (BCCI). This allows the team to participate in the fourth edition of the T20 tournament in April, unless BCCI moves the Supreme Court against the Bombay HC verdict.

A two-member division bench of the Bombay high court ruled the ground of issuing a termination letter to the franchise was “erroneous and flawed”. “It is abundantly clear that BCCI wanted to terminate the contract on the basis of what was factually incorrect. Termination was anything but fair and was wholly arbitrary,” observed the court.

Kings XI co-owner Ness Wadia reportedly said they can now take part in the BCCI’s players’ auction to be held on January 8 and 9.

The bench cited seven circumstances, which supported the decision of the single bench. “The members of the consortium had exercised control of franchise,” it observed. “Neither Dabur nor Windy Investments had exercised 100 per cent control of franchise and all these companies belonged to Mohit Burman. There was no change in share pattern,” the bench said. It also rejected BCCI’s argument that under the franchisee agreement Kings XI Punjab can’t seek injunction from any court and have to go for arbitration, saying, “This will not apply here”.

BCCI had also terminated the franchisee agreement of Rajasthan Royals on October 10, allegedly on the grounds of committing breach of contract by having changes in its corporate structure without consent. Rajasthan Royals had on October 26 approached the High Court against BCCI. However, the case was kept pending as both the parties agreed to resolve the matter through arbitration.

BCCI had then prepared a roadmap for participation of 8 teams in the fourth season of IPL. It now has to rework the plan.

On Tuesday, the Bombay High Court had dismissed an appeal filed by BCCI challenging a stay granted by an arbitrator to the termination of the franchise contract of Rajasthan Royals.