BCCI vs Deccan Chargers: HC rejects arbitrator's order

The case to come up for final hearing before the Bombay High Court on November 10

The Bombay High Court, 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), has today quashed it, saying that an arbitrator can not over rule an order passed by the court.

The court-appointed arbitrator retired Supreme Court justice CK 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.

 

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

Now the case will come up for final hearing before the Bombay 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, with termination of the franchise contract will mean that the financial woes of the cash-strapped company will not resolve soon.

The case so far:

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 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 in case DCHL fails to furnish the bank guarantee, the termination stands.

DCHL got first extension of 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.