BCCI v. DCHL: A Challenge Beyond the Cricket Ground
After a long battle in the judiciary regarding the termination of the Deccan Chargers team, which was a part of the Indian Premier League team raffle, the Board of Control for Cricket in India (BCCI), has finally seen a conclusion to their need for justice, owing to the 2020 judgment delivered by the Bombay High Court.
Background of the Case
In 2012, the franchise agreement between the BCCI and the Deccan Chargers Holding Ltd was terminated by the BCCI on the grounds of insolvency, inadequate performance by the team players, and creating charges on the assets available for the team. Initially, the contract agreement was signed for ten years. Still, the termination happened five years into the agreement, owing to the poor performance, which was not meeting the expectations of the agreed-upon contracts that had been signed initially.
When this agreement was terminated, the BCCI handed over the control of this franchise to a company known as Sun TV, which would then be in charge of a new company known as Sunrisers Hyderabad, which had substituted the existence of Deccan Chargers Holding Ltd.
Due to the termination of the contract before its actual term of suspension, the Deccan Chargers filed a court case in the Bombay High Court, which recommended the use of arbitration proceedings to solve the dispute at hand.
The outcome of the Case
Initially, Justice CK Thakkar, who was appointed as the sole arbitrator for the dispute at a man at hand, awarded a sum of Rs.4800 crores in favor of DCHL, which did not seem justifiable to the BCCI, owing to which the award was challenged in the Bombay High Court.
After arduous and lengthy hearings, the arbitration award given by Justice CK Thakkar was overturned by Justice Gautam Patel, who stated that such compensation for the DCHL was illegal, primarily because of the terms for termination of the contract as indicated by the BCCI, was entirely just. Sufficient evidence was provided which backed up the claims of the BCCI.
The reason for overturning the arbitration award passed by Justice Thakkar lay in the fact that the relief provided through the means of that award was not necessary and ended up granting a relief that was not requested for in the first place.
By overturning such an arbitration award, the Bombay High Court provided relief to the BCCI, stating that the terms of termination of the contract were fully justiciable, in addition to which the opinion of the court pointed fingers towards the fact that the arbitrator had not been cautious in the disposal of his duties, as the evidence before him had been ignored. The reasons for the termination of the contract by BCCI were also not paid the weightage they deserved.
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