Deccan Chronicle wins arbitration against BCCI for Rs 4,800 crore. The board of control for cricket in India (BCCI) on Friday lost an arbitration award to Deccan Chronicle Holdings Ltd worth ₹4800 crore. The award was passed in favour of Deccan Chronicle by a court appointed arbitrator in Mumbai on premature termination of franchise.
Deccan Chronicle was the franchise owner of Deccan Chargers, one of the primary eight teams of Indian Premier League (IPL). The matter pertains to termination of franchise by BCCI. On 15 September 2012 following an emergency meeting of IPL governing council.
Terming this termination as illegal the company had moved Bombay High Court against the termination. However a tender was floated by BCCI for the Hyderabad franchise and awarded to Sun TV Network.
The Bombay High court had appointed retired CK Thakkar J. as a sole arbitrator. Dhir and Dhir Associates who represented Deccan Chronicle told Mint that Deccan Chronicle has won an award of ₹4800 crore against BCCI on premature termination of franchisee agreement.
BCCI was being represented by Maniar Srivastava Associates.
The matter arose when Deccan Chronicle failed to furnish a bank guarantee of ₹100 crore from a nationalised bank to the BCCI in 2012. However a day before the notice period of 30 days was supposed to end the franchise was cancelled.
This award is a relief for the bankrupt company as the National Company Law Tribunal (NCLT) had already allowed a resolution plan for the company submitted by Kolkata-based SREI Multiple Asset Investment Trust Vision India Fund in 2019.
This year IPL 2020 was postponed indefinitely due to the pandemic.
