Relief To BCCI As Bombay High Court Sets Aside Rs 4,800 Crores Award In Deccan Chargers Case

Justice Gautam S Patel set aside the 2020 award passed by the sole arbitrator in favour of DCHL. However, the court directed BCCI to pay Rs. 30 crore it owed DCHL as franchise share, with interest.

In 2012 DCHL was declared a successful bidder for the Deccan Chargers franchise from Hyderabad, and they entered into a contract with BCCI for ten years. But in August 2012, BCCI issued a show-cause notice for termination, subsequently terminating the contract.

Following a petition by DCHL, the High Court appointed retired Supreme Court judge Justice (Retd) C K Thakker as the sole arbitrator to decide the dispute.

Justice (Retd) Thakker passed the award in favour of DHCL July, last year and asked BCCI to pay DCHL a total compensation of Rs 4,814.67 crores, 10% interest from 2012, in addition to costs.

The BCCI subsequently challenged the award before the Bombay HC.

BCCI, represented by the Solicitor General Tushar Mehta, argued that the arbitrator did not consider the contract when it held the termination to be illegal because BCCI had failed to pay players, support staff etc, as one of the reasons.

Mehta argued that there was no explanation on how the arbitrator arrived at the compensation figure of over Rs 4000 crore, either,

Justice Patel has now set aside this order, a detailed copy of which is awaited.