Bombay High Court orders BCCI to pay ₹539 crore over Kochi Tuskers Kerala dispute

The Bombay High Court has upheld an arbitral award directing the Board of Control for Cricket in India (BCCI) to pay a total of 53.84 crore to Kochi Tuskers Kerala's owners, Kochi Cricket Private Limited (KCPL) and Rendezvous Sports World (RSW), resolving a long-standing dispute over the IPL franchise.

The Kochi franchise participated in the 2011 Indian Premier League season but was terminated by the BCCI in September 2011 for allegedly breaching the terms of agreement, specifically failing to provide a bank guarantee by the deadline. This termination led to arbitration proceedings initiated by KCPL and RSW, who claimed the termination was premature and constituted a wrongful breach.

An arbitral tribunal ruled in favor of KCPL and RSW in 2015, ordering the BCCI to pay 384.83 crore along with 18% interest from September 19, 2011, and 72 lakh towards arbitration costs. The BCCI challenged this award in the Bombay High Court, arguing it was "perverse" and contrary to Indian law.

However, Justice Riyaz I. Chagla rejected the BCCI's challenge, stating the court's jurisdiction under Section 34 of the Arbitration Act is limited and found no "patent illegality" in the arbitral awards that would justify intervention.

"The jurisdiction of this Court under Section 34 of the Arbitration Act is very limited," Justice Chagla noted.

This ruling effectively ends the legal battle over the Kochi Tuskers Kerala IPL franchise, confirming the BCCI's liability to pay the awarded sum to the franchise owners.

The dispute highlights the complexities of IPL franchise agreements and the legal recourse available when contractual terms are contested.

The Bombay High Court ordered the BCCI to pay ₹539 crore to Kochi Tuskers Kerala's owners, KCPL and RSW, over the IPL franchise dispute. The court upheld an arbitral award rejecting BCCI's challenge, citing no 'patent illegality' in the ₹538 crore ruling related to the 2011 franchise termination.