Mumbai:

The KCPL was supposed to furnish a bank guarantee by March that year, but they failed to do so, resulting in the termination of the contract. The franchise cited issues regarding stadium availability, shareholding approvals, and a sudden reduction in the number of IPL matches behind their failure to provide the bank guarantee.

Despite that, the BCCI continued to be engaged with the KCPL for several months and took payments before abruptly ending the agreement between the parties. They encashed a previous guarantee by RSW, a move that triggered the row.

The Board of Control for Cricket in India (BCCI) faced a significant setback on Tuesday as the Bombay High Court upheld the arbitral awards exceeding Rs 538 crore in favour of the owners of the now-defunct franchise Kochi Tuskers Kerala (KTK), who featured in the IPL 2011.

According to a report by Bar and Bench, a single-judge bench of Justice RI Chagla gave the verdict that the court cannot reverse the decision of the arbitrator like an appellate body, and hence it will remain the same. The case pertains to BCCI terminating the contract with the KTK, the franchise initially led by the consortium Rendezvous Sports World (RSW). Later in 2011, KTK was operated by Kochi Cricket Private Limited (KCPL).

Both KCPL and RSW filed arbitral proceedings in 2012 and challenged the contract termination, following which the arbitral tribunal decided in their favour. The tribunal awarded an amount of Rs 384 crore to KCPL and a return of a sum in excess of Rs 153 crore to RSW, including interests and costs.

The BCCI challenged the decision, claiming the KCPL's failure to furnish the bank guarantee was a clear breach of contract. They also stated that the arbitration invoked by RSW was invalid under the Indian Partnership Act.

“The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited. BCCI’s endeavour to delve into the merits of the dispute is in teeth of the scope of the grounds contained in Section 34 of the Act. BCCI’s dissatisfaction as to the findings rendered in respect of the evidence and/or the merits cannot be a ground to assail the Award,” the Court observed.

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