Deccan Chargers wins IPL arbitration, to get `8,000cr

■ Award biggest in sport history, arbitrator says BCCI’s action was illegal

A Bombay high courtappointed arbitration tribunal on Friday found illegal the termination of the Deccan Chargers IPL team by the Board of Cricket Control in India (BCCI), and awarded the Chargers’ promoters, DCHL, substantive damages and compensation which, including interest and costs, totalled approximately `8,000 crore.

According to a statement by the lawyers Dhir and Dhir Associates, the dispute arose in the fifth IPL season when the BCCI issued a show-cause notice for termination of the franchise on August 11, 2012, over what the promoters alleged were “trivial matters”. It was also claimed that the BCCI was discriminating as, though some other franchisees had “committed grave irregularities… to the extent of betting, which was in public domain,” they were handed meagre penalties, or were banned for two seasons.

The Chargers’ promoters were given 30 days to rectify matters, but the IPL in a meeting on the 29th day took the decision to terminate the franchise.

The rectification happened on the 30th day itself, yet the BCCI chose to disregard it.

The Chargers approached the Bombay high court and as per the terms of the franchisee agreement, arbitration proceedings started with Justice C.K. Thakar (Retd) as the sole arbitrator. DCHL asked for the setting aside of the termination and claimed damages of `6,046 crore plus interest and charges as per the terms of the agreement. The BCCI countered with a claim of `214 crore for the remaining five years of the 10-year contract (signed in 2008) as the franchisee fee.

Proceedings were reserved for orders in 2017 and the final award passed on Friday.

In it, the arbitrator found the termination illegal. It was held premature as the termination was done before the end of the time period. Adding to the BCCI’s unseemly haste was the fact that the matter was rectified by the promoters within the time period. It also held that as the other franchises — found guilty of betting — were banned only for a limited number of seasons, that too on the direction of the Supreme Court, the Chargers’ termination was arbitrary and unfair.

The damages and compensation allowed by the arbitrator amount to `4,814.67 crore plus 10 per cent interest per year from the date of the initiation of arbitration proceedings (in 2012) plus cost of `50 lakh. The BCCI's counterclaim was allowed in part. The BCCI has yet to comment on the award.

“It is gratifying that justice has prevailed,” Maneesha Dhir, appearing for DCHL, said.