The Bombay High Court delivered a significant blow to the Board of Control for Cricket in India (BCCI) in a landmark ruling, siding with the now-defunct IPL franchise, Kochi Tuskers Kerala.
Sports News: The Board of Control for Cricket in India (BCCI), known for its strict administrative practices and discipline in the world of cricket, has suffered a major setback. The Bombay High Court ruled in favor of Kochi Tuskers Kerala, an IPL team that was expelled, ordering the BCCI to pay ₹538 crore (approximately $65.5 million USD) in compensation.
This decision stems from a decade-old dispute where the Kochi franchise was ousted from the league without sufficient justification. The court explicitly stated that no "manifest illegality" was found in the arbitration award, thereby dismissing the BCCI's appeal.
What is the case about?
In 2010, two new teams—Pune Warriors India and Kochi Tuskers Kerala—were added to the IPL. The Kochi Tuskers Kerala franchise was awarded to a group led by Rendezvous Sports World (RSW), later operated by Kochi Cricket Pvt Ltd (KCPL). The team played the 2011 IPL season, but the BCCI terminated their contract the following year, alleging failure to provide the mandatory bank guarantee.
The case goes to arbitration
In 2012, KCPL and RSW initiated arbitration proceedings against the BCCI's decision, claiming the expulsion was unfair and unlawful. After years of hearings, an arbitration panel ruled in favor of Kochi Tuskers in 2015. The ruling mandated that the BCCI pay KCPL ₹384.8 crore (approximately $46.4 million USD) in compensation.
Additionally, RSW was awarded ₹153.3 crore (approximately $18.5 million USD) for interest and legal costs. The BCCI challenged this decision in the Bombay High Court, but the court, under Justice R. Chagla, ruled that no error existed in the arbitration award justifying court intervention. The court stated that the BCCI should not delay paying the compensation.
Kochi Tuskers Kerala's performance
Kochi Tuskers Kerala played only one IPL season—2011—in the IPL's history. In that season:
- The team won only 6 out of 14 matches.
- They lost 8 matches.
- The team finished the season in 8th place with 12 points.
- Their position was average in the 10-team competition.
- Although their performance wasn't impressive, the drastic measure of contract termination was deemed irresponsible.
A blow to BCCI's image?
The BCCI is considered one of the most powerful cricket bodies globally. However, the manner in which they expelled the franchise without sufficient due process raises questions about their transparency and disciplinary policies. It's also noteworthy that the court observed that even an institution like the BCCI must adhere to rules and cannot act arbitrarily in any commercial contract.
