HC OKs arbitral awards asking BCCI to pay former IPL team, owner INR 5.4 bln
This story was originally published at 12:20 IST on 18 June 2025
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NEW DELHI – The Bombay High Court has upheld arbitral awards issued in 2015, directing the Board of Control for Cricket in India to pay INR 5.38 billion, along with interest, to former Indian Premier League franchise Kochi Cricket Pvt. Ltd. and its owner Rendezvous Sports World. The arbitral tribunal had passed the awards noting wrongful termination of franchise agreements by the cricket board.
There were no valid grounds raised by the cricketing board that would warrant an interference with the arbitral award, said Justice R.I. Chagla.
The high court observed that a conditional stay on the execution of the arbitral award had been in effect for several years. This stay has now been extended for an additional two weeks. Accordingly, Kochi Cricket and Rendezvous Sports World will be allowed to withdraw the amounts deposited by the cricket board with the registry after a period of six weeks, the high court said.
In 2008, the cricket board had issued an invitation to tender for the initial eight franchises, which would comprise the Indian Premier League. Thereafter, in 2010, a second tender was issued for the addition of two more franchises. In the second tender, Rendezvous Sports World emerged as the successful bidder for a new franchise based in Kochi and subsequently, entered into an unincorporated joint venture agreement with the cricket board.
The cricket board and Rendezvous Sports World entered into a franchise agreement on an interim basis, pending the incorporation of a joint venture company Kochi Cricket, which would take on the rights and obligations of the Kochi franchise. In 2011, the cricket board and Kochi Cricket formally entered into a franchise agreement.
As per the franchise agreement, Kochi Cricket was required to provide the cricket board with a bank guarantee for a specified amount. However, due to non-payment of the bank guarantee amount, the board terminated both the franchise agreements with Rendezvous Sports World and Kochi Cricket. In 2012, both Rendezvous Sports World and Kochi Cricket invoked arbitration after noting that the termination by the cricketing board was wrongful. End
Reported by Surya Tripathi
Edited by Subhojit Sarkar
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