In a significant financial and legal blow to the Board of Control for Cricket in India (BCCI), the Bombay High Court has upheld an arbitral award of ₹538 crore (approximately $65 million USD) in favor of the now-defunct Indian Premier League (IPL) franchise, Kochi Tuskers Kerala. This ruling comes after a protracted legal battle stemming from the BCCI's termination of the Kochi Tuskers' franchise agreement in 2011, after just one season in the IPL.

The Bombay High Court dismissed the BCCI's petitions challenging the arbitration awards, affirming the decision of the arbitral tribunal. Justice R.I. Chagla, presiding over the case, stated that the court's jurisdiction under Section 34 of the Arbitration Act is limited, and it cannot act as an appellate authority over the arbitrator's findings. The court emphasized that the arbitrator's conclusion that the BCCI's termination of the Kochi franchise was a breach of contract did not warrant interference.

The dispute dates back to 2011 when the BCCI terminated the Kochi Tuskers Kerala franchise, citing a breach of the franchise agreement. The BCCI alleged that the Kochi Tuskers, owned by a consortium led by Rendezvous Sports World (RSW) and operated by Kochi Cricket Private Limited (KCPL), failed to furnish a mandatory 10% bank guarantee.

However, KCPL contested the termination, arguing that the delay in providing the bank guarantee was due to several unresolved issues, including delays in stadium availability, regulatory approvals on shareholding, and a sudden reduction in the number of IPL matches. The franchise also claimed that the BCCI had continued accepting payments for several months before abruptly terminating the contract.

Following the termination, KCPL and RSW initiated arbitration proceedings in 2012, challenging the BCCI's decision. In 2015, the arbitral tribunal ruled in favor of the Kochi Tuskers, awarding ₹384.83 crore to KCPL and ₹153.34 crore to RSW, along with interest and costs. The tribunal concluded that the BCCI's termination of the franchise was a repudiatory breach of contract.

The BCCI challenged the arbitral award in the Bombay High Court, but the court has now upheld the award, delivering a major setback to the cricket board. The High Court emphasized that just because a different view may be possible, it would not be a ground for interference with the arbitral award. The court also noted that the arbitrator's findings were based on material facts and documents on record.

This ruling not only has significant financial implications for the BCCI, requiring them to pay the ₹538 crore award, but it also raises questions about the BCCI's handling of IPL contracts and franchise terminations. The decision reinforces the autonomy of arbitral tribunals and limits the scope of judicial intervention in arbitration matters. The BCCI has six weeks to file an appeal against the ruling.

The Kochi Tuskers Kerala franchise participated in only one season of the IPL, in 2011. The team, which included prominent players such as Brendon McCullum, Mahela Jayawardene, and Muttiah Muralitharan, finished eighth out of ten teams. Despite their short stint in the IPL, the legal battle surrounding their termination has persisted for over a decade, culminating in this recent High Court decision.