Major blow to BCCI! Bombay HC orders to pay ₹538 crore to Kochi Tuskers Kerala

In a recent development, the Bombay High Court has ruled against the BCCI in its legal battle with the now-defunct Indian Premier League (IPL) franchise Kochi Tuskers Kerala. The court dismissed the BCCI’s challenge and upheld an arbitral award of ₹538.29 crore in favor of the franchise owners.

The controversy began in 2011 after the BCCI terminated the franchise’s contract. Rendezvous Sports World was initially awarded the franchise, which was later managed by Kochi Cricket Private Limited (KCPL). The team played just one IPL season before the BCCI terminated the franchise in September 2011.

Bombay High Court Orders BCCI to Pay ₹538 Crore to Kochi Tuskers

The Bombay High Court, through Justice R.I. Chagla, ruled that the BCCI had wrongfully terminated its agreement with the Kochi Tuskers Kerala franchise. As per Bar and Bench, the court stated that it was a breach of contract that “would call for no interference under Section 34 of the Arbitration Act.”

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“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.

BCCI-Kochi Tuskers Dispute Stemmed from Missed Bank Guarantee

The dispute between BCCI and Kochi Tuskers Kerala arose from the franchise's failure to submit a 10% bank guarantee by the March 2011 deadline. KCPL cited unresolved concerns, including stadium availability and a shortened match schedule.

BCCI continued dealings with the franchise and accepted payments for months before terminating the contract and encashing an earlier bank guarantee. KCPL challenged this move, adding that the termination was unlawful and that BCCI’s continued engagement had effectively waived the deadline.

In 2015, an arbitrator ruled in KCPL's favor, awarding over ₹384 crore for wrongful termination and ordering BCCI to refund ₹153 crore to RSW with interest and legal costs. BCCI appealed that the missed guarantee was a fundamental breach and that RSW's arbitration case was invalid.

Bombay High Court Upholds Kochi Tuskers Arbitration Award

The Bombay High Court dismissed all of BCCI’s objections, concluding that the arbitrator had rightly found the cricket board waived the strict bank guarantee deadline through its own conduct.

It also rejected BCCI’s claims that RSW’s arbitration was invalid under the Partnership Act and found no fault in how the arbitration was initiated. Justice R.I. Chagla observed there was no patent illegality or error in the arbitral award.

The court permitted KCPL and RSW to withdraw the awarded funds and granted BCCI six weeks to file an appeal.

With the court’s decision going against it, BCCI now has six weeks to challenge the ruling in a higher court. This marks a major milestone in the long-running dispute between the board and the Kochi Tuskers Kerala franchise.

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