The Bombay High Court has directed the Board of Control for Cricket in India (BCCI) to pay ₹530 crore to Kochi Tuskers Kerala, a former Indian Premier League (IPL) team. This directive upholds the decision of the Arbitral Tribunal. The Bombay High Court also dismissed an appeal filed by the BCCI against the tribunal’s ruling. Justice R.I. Chagla stated that the court cannot act as an appellate authority over the arbitrator’s decision. The issue reached the arbitration tribunal after the BCCI rejected Kochi Tuskers’ demand to be allowed to play in the IPL instead of receiving compensation. The BCCI had previously faced setbacks in various courts in its legal battle against paying compensation, and the Bombay High Court’s ruling continues this trend.
In 2011, the BCCI expelled Kochi Tuskers from the IPL, alleging breach of contract after the team played just one season. Some BCCI board members had opposed this decision at the time, but then-president Shashank Manohar proceeded regardless. The dispute began when the BCCI unilaterally encashed a ₹156 crore bank guarantee provided by Kochi Tuskers for IPL participation. When Kochi Tuskers refused to comply with a directive to provide a new guarantee within six months, the BCCI terminated the team’s contract in September 2011.
Arbitration discussions between the BCCI and Kochi Tuskers’ management began in 2012. The management comprised two entities: Rendezvous Sports World and Cricket Private Limited. In 2015, the tribunal ordered the BCCI to pay ₹354 crore to KCPL and ₹153 crore to RSW, but the BCCI refused to comply. Challenging the tribunal’s decision in the Bombay High Court, the BCCI not only failed to secure a favorable ruling but also saw the court uphold the tribunal’s order to pay ₹538 crore. This ruling is undoubtedly a significant setback for the BCCI.
