Mumbai1 minute ago
- Copy link
BCCI has suffered a major setback in the controversy with the IPL franchise Kochi Tuskers. The board will have to pay Rs 538 crore to the owners of Kochi Tuskers. The Bombay High Court on Tuesday dismissed the BCCI petition. In this petition, the board appealed against the decision of the Arbitral Tribunal. In July 2015, the tribunal ordered the board an arbitral award of Rs 538 crore to the owners of Kochi Tuskers Kerala.
The single bench of Justice RI Chhagla said- ‘The court cannot intervene in the case, as the court’s role is limited under section 34 of the Arbitration and Convention Act. BCCI’s Challenge is against the scope of Section 34 of the Act.
10 years ago in 2015, Justice RC Lahoti of Tribunal ruled in favor of the franchise. The court ordered that BCCI will give Rs 538 crore to the team as a compensation. This decision of the tribunal was challenged by BCCI in the Bombay High Court. Bombay High Court said-
We cannot change the decision of the arbitrator just because you don’t like it.
Kochi Tuskers Kerala played the last IPL match against Chennai Super Kings on 18 May 2011.
What is arbitration? Arbitration is a way in which 2 parties (eg people, companies or organizations) end their dispute in front of third party rather than court. Third party is called arbitrator. There was a quarrel of money between Kochi Tuskers and BCCI. The dispute of both went to the Arbitral Tribunal. The tribunal ruled in favor of Kochi Tuskers.
Understand the whole matter in 3 points
- Kochi Tuskers Kerala was included in 2011 as a new IPL team. The ownership of this team was earlier with the Randagewas Sports World (RSW). It was later handled by Kochi Cricket Private Limited (KCPL). In September 2011, BCCI terminated the franchise.
- Because, the owner of the franchise could not renew the bank guarantee of BCCI. By 26 March 2011, the owner was to submit to the Guarati Bank. The board waited for about 6 months, but did not get 156 crore rupees of the contract. Due to which BCCI terminated the team in the annual meeting on 19 September 2011.
- KCPL and RSW started the process of arbitration in 2012 against this decision of the board. In 2015, the Tribunal ruled that BCCI violated the contract and incorrectly collect the amount of guarantee. The tribunal had said that KCPL suffered a loss of ₹ 384 crore, RSW ₹ 153 crore due to BCCI’s mistake. That is, the compensation of more than ₹ 538 crore was fixed in total, including interest and connequent expenses.
RSW bought team franchise for Rs 1555 crore The Kochi Tuskers was the 9th franchise of the IPL. It was bought by Rondevu Sports World Company in 2010 for Rs 1555 crore. In fact, BCCI increased the number of IPL teams from 8 to 10 in 2011.
The team captained by Mahela Jayawardene was star players like Brendon McCullum, Ravindra Jadeja, Muttiah Muralitharan, RP Singh and Sreesanth. Despite this, the team could win only 6 out of 14 matches and could not reach the playoffs at number 8 in the points table.
Tendulkar scored a century against Kochi Tuskers Kochi played the same season, but the God of Cricket Sachin Tendulkar scored the only century of his T20 career against him. On 15 April 2011, Mumbai Indians scored 182 runs with Sachin’s century at Wankhede Stadium. However, this score was not enough to win the team, Kochi achieved target by losing only 2 wickets in 19 overs. McCullum scored the match winning 81 runs.