Bombay HC upholds ₹538 cr Kochi Tuskers arbitral award against BCCI

Bombay HC dismisses BCCI's appeal and upholds arbitral award over wrongful termination of Kochi Tuskers; franchise partners KCPL and RSW to receive ₹538.84 crore

The Bombay High Court has dismissed the petition of the Board of Control for Cricket in India (BCCI) challenging over ₹538 cr arbitral awards in favour of the now-defunct Indian Premier League (IPL) franchise Kochi Tuskers.

 

The court directed the Indian cricket board to pay ₹385.50 crore to Kochi Cricket Private Limited (KCPL) and ₹153.34 crore to Rendezvous Sports World (RSW), the consortium under which the Kochi Tuskers participated in the 2011 season, the only time it ever took part in the IPL.

 

The BCCI had terminated the team's contract the following year after allegations of breach of the franchise agreement. Following the termination of their contract, RSW and KCPL began arbitration proceedings against BCCI for “wrongful” termination.

 

On June 22, 2015, the arbitral tribunal awarded KCPL over ₹384.83 crore and RSW over ₹153.34 crore, along with interest and costs. The BCCI then approached the high court against the tribunal's award. 

 

Dismissing BCCI's appeals and upholding the awards, a single-judge bench of Justice Riyaz I Chagla said that it was not open for the court to revisit the findings of facts arrived at by the arbitral tribunal since the said tribunal had decided after taking into account all the evidence and documents on record. The court, Justice Chagla said, would also not interfere with the arbitration award even on the grounds of incorrect interpretation by the learned arbitrator.

 

“The learned arbitrator has in the impugned KCPL and RSW awards decided the core issue, viz., whether BCCI has wrongfully invoked the bank guarantee furnished by RSW and whether this amounted to a repudiatory breach of KCPL-FA, by considering the material facts and documents on record as well as the evidence recorded,” the order said.

 

“The learned arbitrator has further considered whether the non-furnishing of a bank guarantee by KCPL by March 22, 2011, constitutes an 'irremediable material breach' of both KCPL and RSW-FA. There is a finding in the impugned Awards that the material on record militated against a finding of 'irremediable material breach',” the order further said.

 

The court also said that the conclusion of the learned arbitrator that BCCI had wrongfully invoked the bank guarantee would call for no interference under Section 34 of the Arbitration Act, which outlines the grounds and procedures for setting aside an arbitral award in India. 

Case file

*  Kochi Tuskers Kerala played only in IPL 2011

  *  BCCI terminated their contract in 2012, citing breach of agreement

  *  KCPL and RSW initiated arbitration, alleging wrongful termination

  *  In 2015, arbitral tribunal awarded ₹385.5 cr to KCPL and ₹153.34 cr to RSW

  *  BCCI challenged the arbitral award in Bombay HC

  *  Court agreed that BCCI wrongly invoked bank guarantees