Massive Blow to BCCI: Bombay High Court Upholds ₹538 Crore Award to Defunct Kochi Tuskers Kerala Franchise

Mumbai, India – In a significant legal setback for the Board of Control for Cricket in India (BCCI), the Bombay High Court has upheld two arbitral awards directing the cricket body to pay over ₹538 crore to the former Indian Premier League (IPL) franchise, Kochi Tuskers Kerala. The ruling, delivered by a single-judge bench of Justice Riyaz I. Chagla on Tuesday, June 17, 2025, marks a decisive turn in a dispute that has lingered for over a decade.

The Heart of the Dispute: Wrongful Termination

The genesis of this substantial payout dates back to September 2011, when the BCCI unilaterally terminated the franchise agreement of Kochi Tuskers Kerala, citing an alleged breach of contract. Kochi Tuskers Kerala, a consortium primarily led by Rendezvous Sports World (RSW) and operated by Kochi Cricket Private Limited (KCPL), had participated in only one IPL season in 2011.

The BCCI’s primary contention was the franchise’s failure to furnish a requisite 10% bank guarantee by the specified March 2011 deadline for the upcoming 2012 season. However, KCPL and RSW argued that the delay was due to several unresolved issues, including the non-availability of a brand-new stadium in Kochi, pending shareholding approvals, and a sudden reduction in the number of IPL matches. They also contended that the BCCI had, through its continued engagement and acceptance of payments for several months post-deadline, effectively waived this strict requirement.

Arbitration and High Court’s Affirmation

Aggrieved by what they termed a “wrongful” termination, RSW and KCPL initiated arbitration proceedings in 2012. In 2015, an arbitral tribunal, presided over by former Supreme Court Chief Justice R.C. Lahoti, ruled unequivocally in favor of the defunct franchise.

The tribunal awarded:

• Over ₹384.8 crore to Kochi Cricket Private Limited (KCPL) as compensation for loss of profits, along with 18% interest from September 19, 2011, and ₹72 lakh in arbitration costs.
• Over ₹153.34 crore to Rendezvous Sports World (RSW), which was the amount of a “wrongfully” encashed bank guarantee, also with 18% interest from the date of contract termination.

The total sum, including interest, now stands at approximately ₹538 crore, although some reports indicate figures slightly above ₹539 crore due to accumulated interest.

The BCCI challenged these arbitral awards in the Bombay High Court, arguing that the tribunal had exceeded its powers, awarded excessive damages beyond contractual caps, and that its findings were perverse and contrary to Indian law.

However, Justice Chagla dismissed BCCI’s petitions, emphasizing the limited scope of judicial intervention under Section 34 of the Arbitration and Conciliation Act. The court ruled that it could not act as an appellate authority to re-examine the merits of the arbitrator’s conclusions or re-evaluate evidence. Justice Chagla noted that the arbitrator’s finding that BCCI had “wrongfully invoked the bank guarantee” and that this constituted a “repudiatory breach of contract” was based on a correct appreciation of the evidence. The court also held that BCCI’s own conduct implied a waiver of the strict bank guarantee deadline.

What Happens Next?

This verdict is a significant financial blow to the BCCI and highlights questions about transparency and governance in the early years of the IPL. The Bombay High Court has granted the BCCI a period of six weeks to file an appeal, likely before a division bench of the High Court or the Supreme Court. The court has also allowed KCPL and RSW to withdraw the ₹100 crore previously deposited by BCCI as a condition for a temporary stay on the award.

The outcome of any further appeals will be closely watched, as this case sets an important precedent for future disputes involving terminated sports franchises in India.