The court’s verdict revived one of IPL’s most controversial chapters, placing a heavy financial burden on the world’s richest cricket board.
Published Jun 19, 2025 | 9:00 AM ⚊ Updated Jun 19, 2025 | 9:00 AM
Kochi Tuskers Kerala.
Synopsis: The Bombay High Court upheld the arbitral award worth over ₹537 crore in favour of the now-defunct IPL franchise Kochi Tuskers Kerala and its stakeholders. Justice Riyaz I Chagla dismissed BCCI’s petitions challenging the arbitration awards granted to Kochi Cricket Private Limited and Rendezvous Sports World.
In a major legal setback for the Board of Control for Cricket in India (BCCI), the Bombay High Court on Tuesday, 17 June, upheld the arbitral award worth over ₹537 crore in favour of the now-defunct Indian Premier League (IPL) franchise Kochi Tuskers Kerala and its stakeholders.
The court’s verdict, made public on Tuesday evening, revived one of IPL’s most controversial chapters, placing a heavy financial burden on the world’s richest cricket board.
Justice Riyaz I Chagla, delivering a detailed 107-page judegment, dismissed BCCI’s petitions challenging the arbitration awards granted to Kochi Cricket Private Limited (KCPL) and Rendezvous Sports World (RSW).
The court ruled that it had no jurisdiction to review the merits of the arbitrator’s findings and refused to act as an appellate authority.
“The BCCI’s grievance regarding the arbitrator’s findings on evidence and contractual interpretation does not constitute valid grounds to set aside the award,” Justice Chagla observed.
He added that the arbitrator’s conclusions were reached through proper evaluation of evidence and contractual terms and did not involve any patent illegality.
Kochi Tuskers Kerala
Kochi Tuskers Kerala, one of the two franchises added during the IPL’s 2010 expansion, had a brief and turbulent existence.
Before playing a single match, the franchise was already entangled in shareholder disputes, public relations missteps over its initial name proposal, ‘Indi Commandos’, and controversies involving Kerala’s entertainment tax policy.
Despite managing a mid-table finish in their debut 2011 season — winning six of 14 matches — the franchise’s financial and legal troubles escalated.
The primary issue stemmed from KCPL’s failure to submit a mandatory 10 percent bank guarantee for the 2012 season, attributing it to ongoing shareholder conflicts and procedural delays.
The first suggested name of the franchise
However, even as this deadline passed, the BCCI continued accepting payments from the franchise well into mid-2011.
This conduct, now interpreted by the court as a waiver of strict enforcement of contractual deadlines, became central to the arbitration proceedings.
In September 2011, the BCCI terminated the franchise agreement, citing breach of contract.
Players were redistributed through a fresh auction, and the BCCI encashed an earlier bank guarantee to pay unsold players. Disputing the termination, KCPL and RSW invoked arbitration under the agreements.
In June 2015, arbitral tribunals ruled decisively in their favour.
KCPL was awarded ₹384.83 crore as damages for lost profits and business opportunities, alongside ₹72 lakh in arbitration costs, with interest at 18 percent per annum from September 2011 until payment. RSW, a key stakeholder, was awarded ₹153.34 crore plus interest.
The BCCI contested these awards, filing arbitration petitions under Section 34 of the Arbitration and Conciliation Act, 1996.
It argued that the arbitrator had overstepped by awarding both loss of profits and wasted expenditure, which it claimed was legally excessive and contractually prohibited. Additionally, the board questioned the legitimacy of RSW’s claim under provisions of the Indian Partnership Act.
After nearly a decade of legal wrangling, the Bombay High Court found no merit in BCCI’s objections.
Justice Chagla held that the arbitrator’s findings — including the conclusion that BCCI had implicitly waived the guarantee deadline through its conduct — were well-supported by documentary evidence and legally sound.
“There is no patent illegality in the arbitral awards that would warrant interference by this Court,” the judgment stated, reaffirming the limited scope of judicial review in arbitration matters.
The court allowed KCPL and RSW to withdraw amounts deposited during the case and granted BCCI six weeks to appeal.
Nearly 14 years after bringing IPL to Kerala for one controversial season, Kochi Tuskers Kerala has returned to haunt Indian cricket’s governing body. This time, however, it comes with a legal bill exceeding ₹538 crore — one of the most expensive setbacks in BCCI’s history.
For an organisation renowned for its financial muscle and command over global cricket, the judgement serves as a sharp reminder of the long-term consequences of administrative miscalculations.
(Edited by Muhammed Fazil.)
