In a major setback for the Board of Control for Cricket in India (BCCI), the Bombay High Court has upheld arbitration awards worth over ₹538 crore in favour of the owners of the former IPL team, Kochi Tuskers Kerala.
Justice R.I. Chagla dismissed BCCI’s attempt to overturn the arbitral awards, clearly stating that the High Court cannot function like an appellate court over an arbitrator’s decision. The judge observed, “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.”
Termination of Franchise Was a Breach, Says Court
Kochi Tuskers Kerala was initially led by Rendezvous Sports World (RSW) and later managed by Kochi Cricket Private Limited (KCPL). The team played only in the 2011 IPL season before BCCI terminated the franchise, citing failure to furnish a 10% bank guarantee on time. KCPL, however, argued that the delay was due to challenges such as stadium permissions and a sudden reduction in the number of IPL matches. They also claimed that the BCCI continued accepting payments for several months before abruptly cancelling the franchise.
The High Court agreed with the arbitrator’s conclusion that the BCCI acted in breach of contract. It stated, “The arbitrator’s conclusion that the BCCI’s termination of the Kochi franchise was a repudiatory breach of contract would call for no interference under Section 34 of the Arbitration Act.” It further added, “Thus, based on these material facts and documents on record, the finding of the learned Arbitrator that BCCI waived the requirement under Clause 8.4 of the KCPL-FA for furnishment of bank guarantee for 2012 season on or before 22nd March, 2011 cannot be faulted.”
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