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New Delhi [India], July 18 (ANI/BusinessWire India): In July 2008, BCCI had conceptualised IPL involving competition between City Based Teams for the T20 format of cricket.
In the bidding process conducted in Jan 2008, Deccan Chronicles Holding Ltd (DCHL) was declared as the successful bidder for Franchise Deccan Chargers and a Franchise Agreement dated 10.04.2008 was signed between Deccan Chargers and BCCI for a period of ten years.
In 2012, BCCI started raking up trivial matters, only with a view to deprive DCHL of a valuable right and issued a show-cause notice for termination of the Franchise on 11.08.2012. Though 30 days period was given to cure the defects /issues, the termination was arbitrary and pre-meditated and was confirmed one day before the expiry of the cure period. In fact, an emergency meeting was called by the IPL GC at 9.30 pm, a day before the cure period ended wherein the termination was confirmed.
In this background, DCHL knocked the doors of High Court of Bombay, and thereafter, as per terms of the Franchise Agreement, Arbitration proceedings commenced, with Justice C K Thakker (Retd), Former Judge, Supreme Court of India, as the sole Arbitrator.
Today, the Ld Arbitrator passed a detailed and reasoned order, and has upheld the termination as illegal. It was not only on the ground that the same was pre-mature and was confirmed before the expiry of the time given for curing the defect but also because DCHL duly cured defects within the cure period.
“The Arbitration Award is a huge success for our client. It is indeed gratifying that Arbitrator has appreciated the contentions raised by us, and justice has prevailed,” said Maneesha Dhir, Managing Partner, Dhir & Dhir Associates.
The Ld Arbitrator has granted damages to the tune of Rs 630 Crores and has granted compensation to DCHL to the tune of Rs 4,160 Crores. DCHL has also been granted Rs 36 Crores as an admitted amount payable under the Franchise Agreement.
The Ld Arbitrator has also granted interest @10 per cent from the date of initiation of the arbitration proceedings. The counterclaim of BCCI has been allowed in part. The net payable amount by BCCI to DCHL is Rs 4814.67 Crores plus interest @ 10 per cent from the date of initiation of arbitration proceedings and cost of Rs 50 Lacs.
However, it is to be yet seen, as to whether BCCI will accept the award and finally settle the dispute or invoke any legal remedy.
This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)