Bombay High Court Upholds Arbitration Award – BCCI Ordered to Pay ₹538 Crore to Kochi Tuskers Kerala
The Bombay High Court has dealt a major blow to the Board of Control for Cricket in India (BCCI) by upholding an arbitration award in favor of the former IPL franchise Kochi Tuskers Kerala. The court directed the BCCI to pay ₹538 crore to the franchise, dismissing the board’s appeal against the 2015 arbitration ruling.
Background of the Dispute
Kochi Tuskers Kerala played only one season in the Indian Premier League (IPL) – the 2011 edition. That year, the BCCI abruptly terminated their franchise, citing a breach of contract. The BCCI alleged that the franchise had failed to submit a bank guarantee within the stipulated timeline, thereby violating contractual terms.
In response, the Kochi franchise management took the matter to arbitration. In 2015, an arbitration panel led by Justice R.C. Lahoti ruled in favor of Kochi Tuskers. The panel ordered the BCCI to pay ₹384 crore to Kochi Cricket Private Limited (KCPL) and ₹153 crore to Rendezvous Sports World — totaling nearly ₹550 crore. However, the BCCI challenged this decision in the Bombay High Court.
Court’s Verdict
The Bombay High Court recently ruled on BCCI’s appeal, stating that its scope of intervention under Section 34 of the Arbitration and Conciliation Act is limited. The court clarified that BCCI’s attempt to re-examine the merits of the case goes beyond the permissible bounds of Section 34.
In its ruling, the court stated:
"Under Section 34 of the Arbitration Act, the jurisdiction of this Court is narrow. The BCCI's attempt to revisit the merits of the dispute does not fall within the scope defined under this section."
As a result, the High Court upheld the arbitration award and directed the BCCI to pay ₹538 crore to Kochi Tuskers Kerala.
About Kochi Tuskers Kerala
The franchise was bought for approximately ₹1,550 crore but lasted just one season in the IPL. In the 2011 season, Kochi Tuskers Kerala finished eighth in the ten-team points table, winning 6 out of 14 league matches. The team featured notable players like Brad Hodge, Mahela Jayawardene, Brendon McCullum, and Ravindra Jadeja.
