New Delhi, June 16 (ILNS): The Bombay High Court today set aside an arbitration award that had directed the Board of Control for Cricket in India (BCCI) to pay over Rs 4,800 crore to Deccan Chronicle Holding Ltd (DCHL) for terminating the latter’s franchise Deccan Chargers (DC) from the Indian Premier League.
Justice Gautam S Patel’s setting aside of the 2020 arbitration award came as a big relief for the BCCI, but the judge also directed the BCCI to pay Rs 30 crore (plus interest) that it owed to DCHL as franchise share.
DCHL was declared a successful bidder in 2012 for the Deccan Chargers franchise from Hyderabad and they entered into a contract with the BCCI for ten years. Subsequently, the BCCI issued a show-cause notice in August 2012, in its process of terminating the contract. The case had gone into arbitration and BCCI landed in a bad situation. The BCCI challenged this arbitration award in the Bombay High Court.
Solicitor General Tushar Mehta, representing the BCCI, submitted that the arbitrator did not consider details of the contract especially regarding payments to players and support staff. Mehta also said that there was no explanation in the arbitration award on how the arbitrator arrived at the compensation figure of over Rs 4,000 crore. In September 2012 high court had appointed retired Supreme Court Justice C K Thakker as the sole arbitrator to settle the dispute.
Justice Thakker passed the award in favour of DHCL in July last year and asked the BCCI to pay DCHL a total compensation of Rs 4,814.67 crores, 10% interest from 2012, in addition to costs. ILNS\AP\SJ