Bombay HC`s verdict on BCCI appeal in DC case today

Updated: Oct 18, 2012, 08:14 AM IST

Mumbai: The Bombay High Court will pronounce its verdict today on BCCI`s appeal against the status quo ordered by the arbitrator in its dispute with debt-laden DCHL the stay on which had led to the Cricket Board going ahead with the termination of latter`s IPL franchise Deccan Chargers.

The Deccan Chargers had lost its place in the IPL last Saturday after the high court stayed the order of the arbitrator for maintaining status quo in the matter till further hearing and Board of Control for Cricket in India (BCCI) said the termination stands following the court`s order.

A day after ending the Deccan Chargers` franchise, the BCCI had begun the process of finding a new IPL team inviting bids in respect of 12 cities -- Ahmedabad, Cuttack, Noida Dharamsala, Indore, Hyderabad, Kanpur, Kochi, Nagpur, Rajkot, Ranchi and Vizag.
"IPL season 6 is going to commence from April next year. There are several good international players from the Deccan Chargers team who will be left high and dry if they are not included in the auction list," senior BCCI counsel Raju Subramanium submitted before Justice R D Dhanuka who reserved the order for Thursday.

Subramanium said DCHL was given sufficient time to submit the bank guarantee of Rs 100 crore as directed by another judge of the High Court. "Justice Kathawala had kept DCHL and BCCI`s interest in mind and asked them to submit bank guarantee if they wanted to participate in the IPL 6 season."

DCHL`s failure to submit bank guarantee of Rs 100 crore of a nationalised bank allowed BCCI to initiate action in furtherance to the termination.

Senior counsel S U Kamdar, appearing for DCHL, on Wednesday told the court that the company, which is in financial difficulty, should be allowed to sell the team. "To help BCCI, the company decided to go out of IPL 6 by selling the team. But the cricket board has a problem with that also," he said.

Meanwhile, Ratnakar Bank on Wednesday filed an application saying it was ready to submit the bank guarantee on behalf of DCHL. BCCI, however, opposed this saying the High Court order said the guarantee has to be submitted through a nationalised bank.

BCCI had on September 15 taken the decision to terminate the contract at an emergency IPL governing council meeting in Chennai, which was challenged by DCHL in the Bombay high court.

The court had on October 1 ordered DCHL to furnish a bank guarantee of Rs. 100 crore, bear all expenses for IPL 6, including making payments to BCCI towards franchise, players and support team costs. Besides, it was asked to bear the costs of conducting matches and other expenses.

In the event of any default on part of DCHL, BCCI shall be entitled to invoke the bank guarantee to the extent necessary, justice Kathawala had ruled.

The Deccan Chargers had failed to produce Rs. 100-crore bank guarantee before the court on October 12, the condition set by the court for the team`s continuance in the IPL, effectively meaning the end of the road for the beleaguered team.

The DCHL, however, approached the high court-appointed arbitrator, retired Supreme Court judge CK Thakkar, the same day and secured an order that status quo be maintained. The arbitrator`s order had prevented BCCI from going ahead with its termination process.

Aggrieved, the Cricket Board then moved the Bombay high court, which stayed the arbitrator`s order on October 13, paving the way for the BCCI to go ahead with the termination of the franchise and invite bids for a new team.