• Home
  • Cricket News
  • Bombay High Court Rules Against Bcci Upholds 538 Cr Case Against Kochi Tuskers Kerala

Bombay High Court Rules Against BCCI; Upholds ₹538 Cr Case Against Kochi Tuskers Kerala

Soumyajit Dutta

Bombay High Court decides against BCCI [Source: @Rash28101/X.com]Bombay High Court decides against BCCI [Source: @Rash28101/X.com]

In a significant legal blow to the Board of Control for Cricket in India (BCCI), the Bombay High Court has dismissed the cricket board’s challenge to an arbitral award exceeding ₹538 crore in favour of the owners of the now-defunct Indian Premier League (IPL) franchise, Kochi Tuskers Kerala. 

The decision, delivered by Justice RI Chagla, upholds a 2015 arbitration ruling that found the BCCI wrongfully terminated the franchise agreement following the team's participation in the 2011 IPL season.

BCCI Get Massive Blow As Court Favours Kochi Tuskers

Justice Chagla emphasized the court’s limited jurisdiction under Section 34 of the Arbitration Act, stating that the court cannot act as an appellate authority to re-examine the merits of the dispute. As quoted by BarandBench, He noted, “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 judge concurred with the arbitrator’s conclusion that BCCI’s termination of the Kochi franchise was a repudiatory breach of contract, stating that a different possible view is not a valid reason for judicial interference.

Who Were The Kochi Tuskers Kerala?

Kochi Tuskers Kerala was an IPL franchise awarded to a consortium led by Rendezvous Sports World (RSW) and later operated by Kochi Cricket Private Limited (KCPL). 

The team participated in the 2011 IPL season but was plagued by off-field controversies, including disputes among owners and issues related to stadium availability. The franchise was terminated by BCCI in September 2011, with the board citing the failure to furnish a required bank guarantee as the primary reason.

What Led To The Dispute?

The dispute arose when KCPL failed to provide a 10% bank guarantee by the March 2011 deadline, citing unresolved issues such as stadium availability and a reduced match schedule. 

Despite this, BCCI continued to engage with the franchise and accepted payments for several months before ultimately terminating the agreement and encashing an earlier guarantee. Kochi Tuskers Kerala challenged the termination, arguing it was illegal and that BCCI had waived the strict deadline through its conduct.

In 2015, an arbitrator awarded over ₹384 crore to KCPL for wrongful termination and ordered the return of over ₹153 crore to RSW, along with interest and costs. The BCCI contested the award, claiming KCPL’s failure was a fundamental breach justifying termination, that the damages were excessive, and that RSW’s arbitration claim was invalid.

High Court’s Verdict

The Bombay High Court rejected all of BCCI’s arguments, finding that the arbitrator correctly determined BCCI had waived the strict bank guarantee deadline through its actions. The court also found no bar to RSW’s claims under the Partnership Act and dismissed the argument that arbitration was improperly invoked. 

Justice Chagla concluded there was no patent illegality or error in the award and allowed KCPL and RSW to withdraw the deposited sums, granting BCCI six weeks to appeal.

What’s Next For BCCI?

The BCCI now has six weeks to file an appeal against the High Court’s decision. This ruling marks a major chapter in the long-standing legal battle between the cricket board and the Kochi Tuskers Kerala franchise, which has spanned over a decade and involved multiple rounds of arbitration and litigation.