Bombay High Court directs BCCI to pay ₹538 crore

In a significant legal setback, the Bombay High Court has upheld an arbitral award directing the Board of Control for Cricket in India (BCCI) to pay ₹538 crore to the now-defunct IPL franchise Kochi Tuskers Kerala. The franchise was terminated in 2011 after just one season, with BCCI citing failure to submit a mandatory bank guarantee on time as the reason for the contract breach.

The court dismissed BCCI’s challenge, stating that under Section 34 of the Arbitration Act, its jurisdiction is limited and the board’s attempt to contest the merits of the original dispute was beyond the permissible grounds. The judgment emphasized that dissatisfaction with evidence or findings cannot be used to assail the arbitration award.

Kochi Tuskers Kerala had earlier won an arbitration case in 2015, where BCCI was ordered to pay over ₹550 crore to the franchise owners. However, the board delayed compliance by contesting the award in court. The recent High Court ruling reinforces the validity of that earlier verdict.

The franchise, purchased in 2010 for ₹1,550 crore, had featured top international players like Mahela Jayawardene, Brendon McCullum, Brad Hodge, and Ravindra Jadeja. In their only IPL season, the team finished eighth in the standings with six wins from 14 matches.