The Bombay High Court has upheld two arbitral awards directing the BCCI to pay over Rs 538 crore to the former IPL franchise Kochi Tuskers Kerala’s stakeholders — Kochi Cricket Private Ltd (KCPL) and Rendezvous Sports World (RSW) — for wrongful termination of the team in 2011.

Here’s what the case was about, what the court ruled, and what it means for the BCCI.

Who are KCPL and RSW?

• KCPL and RSW were part of the consortium that owned Kochi Tuskers Kerala, an IPL franchise that played just one season (2011).
• Internal conflicts saw RSW later exiting the ownership, but both parties pursued claims after the BCCI terminated the team’s contract.

Why was Kochi Tuskers terminated?

• The BCCI ended the franchise agreement in September 2011, citing failure to furnish bank guarantees by the required March deadlines.
• KCPL disputed this, claiming the BCCI had waived the deadline through its actions and the termination was disproportionate.

What did the arbitrators say?

• In 2015, two arbitral awards were passed:
• KCPL: Rs 384.8 crore in damages + 18% interest + Rs 72 lakh in costs
• RSW: Rs 153.34 crore in damages + 18% interest
• Both ruled that BCCI’s termination was wrongful and amounted to a breach of contract.

Why did BCCI challenge it?

• BCCI argued the tribunal exceeded its powers.
• It claimed damages awarded were excessive and beyond contractual caps.
• It also questioned RSW’s standing under the Indian Partnership Act.

What did the Bombay High Court say now?

• Justice Riyaz I. Chagla dismissed BCCI’s challenge.
• The court said it cannot re-evaluate evidence or act as an appellate body over an arbitrator’s findings.
• Found no “patent illegality” in the arbitral awards.
• Granted KCPL and RSW permission to withdraw the deposited sums.

What happens next?

• BCCI has been given six weeks to file an appeal.
• If the decision holds, this will mark a major legal and financial setback for the cricket board.

Why This Matters

• This is a rare case where the BCCI has been held liable for its handling of an IPL franchise.
• The Kochi Tuskers episode has long raised questions about transparency and governance in the IPL’s early years.

First Published in The Hindu