Mumbai: In a major reprieve to Indian Premier League franchisee Rajasthan Royals, the Bombay High Court on Tuesday upheld the order passed by an independent arbitrator granting stay to the termination of its contract by the BCCI.
Justice S J Vazaifdar today dismissed an appeal filed by BCCI challenging the stay granted by the arbitrator and permitted Rajasthan Royals to participate in the IPL-4 auction that is to be held on January 8 and 9.
The Court, however, imposed a condition on Rajasthan Royals directing them to file an affidavit before it by January 3 specifying full details of its ownership pattern and mode of control.
"It is necessary that the bonafides of the three owners - Emerging Media (IPL) Ltd, Tresco International and Bluewater Estates Ltd - are established. BCCI is entitled to call for full disclosure of ownership under the franchisee agreements," the court observed.
Apart from specifying the mode of control, the affidavits should also include a statement from all the three company owners that they are in full control of their investment companies.
The Court also directed Rajasthan Royals to submit USD 2.83 million as guarantee to the BCCI for the contract and USD 18 million as bank guarantee for the players.
The arbitration proceedings shall continue unless BCCI approaches the Supreme Court challenging the stay.
BCCI had on October 10 terminated the franchisee agreement of Rajasthan Royals - winners of IPL in 2008 – after the team allegedly committed breach of contract by having changes in its corporate structure without consent.
Rajasthan Royals had on October 26 approached the High Court against BCCI. However, the case was kept pending as both the parties agreed to resolve the matter through arbitration.
On November 30, Justice B N Srikrishna, who was acting as arbitrator, granted injunction in Rajasthan Royals favour by staying the termination of its contract. BCCI then challenged this before the High Court.