Lekha G –
The Bombay High Court has set aside an arbitration award that directed the Board of Control for Cricket in India (BCCI) to pay INR 4,800 crore to Deccan Chronicle Holding Ltd (DCHL) in a dispute pertaining to termination of the latter’s IPL franchise team in 2012.
A single-judge bench of Justice Gautam S Patel, set aside the 2020 arbitration award granted by retired Supreme Court Judge C K Thakker, who was appointed in September 2012 to ascertain whether the notice given to Deccan Charges by BCCI was illegal.
“The award by sole arbitrator proceeded in places without reasons, in others by ignoring evidence, in yet others by wandering far afield from the contract and in taking views that were not even possible. It granted reliefs not even prayed for and took views that were not possible i.e, that no reasonable person could have done,” the Court observed.
The Court further directed the BCCI to pay an additional amount of INR 34 crore awarded to DCHL along with the due interest.
It was also noted that the grounds for termination of the contract between BCCI and DCHL were not proven to have been cured.
The Court said that, “There is no cogent answer to this petition. It succeeds. Except to the limited extent of the award in favour of DHCL for INR 36 crores less INR 1.83 crores and interest on that amount. The award dated 17th July 2020 is set aside.”
The dispute arose in 2012 when BCCI had served a notice terminating the franchise agreement with the DHCL. The arbitrator had awarded over INR 4,800 crore to the DHCL stating that the termination of the franchise was illegal, the same was subsequently challenged by the BCCI.