Home >Companies >News >Deccan Chronicle wins 4,800 crore arbitration award against BCCI

The board of control for cricket in India (BCCI) on Friday lost an arbitration award to Deccan Chronicle Holdings Ltd worth 4800 crore. The award was passed in favour of Deccan Chronicle by a court appointed arbitrator in Mumbai on premature termination of franchise.

Deccan Chronicle was the franchise owner of Deccan Chargers, one of the primary eight teams of Indian Premier League (IPL). The matter pertains to termination of franchise by BCCI on 15 September 2012 following an emergency meeting of IPL governing council.

Terming this termination as illegal the Hyderabad based company had moved Bombay High Court against the termination. However a tender was floated by BCCI for the Hyderabad franchise and awarded to Sun TV Network. The name changed was subsequently changed to 'The Sunrisers'.

The high court eight years back had appointed retired justice CK Thakkar as a sole arbitrator. The award went in favour of the Hyderabad based company against the board, the dues including interest have to paid by September 2020.

A spokesperson for BCCI did not offer any comments on the developments immediately.

When Deccan chronicle lawyers were contacted for details, Maneesha Dhir, managing partner, Dhir and Dhir Associates told Mint that Deccan Chronicle has won an award of 4800 crore against BCCI on premature termination of franchisee agreement. Copy of order is awaited," said Pyasi.

BCCI was being represented by Maniar Srivastava Associates.

The matter started when Deccan Chronicle failed to furnish a bank guarantee of 100 crore from a nationalised bank to the BCCI in 2012. Following which BCCI issued a showcause notice to the company. The company had 30 days to rectify the deficiency. However a day before the notice period was supposed to end the franchise was cancelled following an emergency meeting of governing board.

Deccan Chronicle had argued that this termination was premature and thus illegal.

This award also comes as a relief was the bankrupt company as the National Company Law Tribunal (NCLT) had already allowed a resolution plan for the company. In 2019 the tribunal NCLT had approved the resolution plan submitted by Kolkata-based SREI Group’s SREI Multiple Asset Investment Trust Vision India Fund. The funds are being distributed to 37 creditors against dues of 8180 crore.

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