An arbitral or arbitration court in a dispute with the Board of Control for Cricket in India (BCCI), Deccan Chronicles Holdings Ltd. (DCHL) has given a decision in favor of BCCI to pay Rs 4,800 crore to DCHL. This arbitration decision has come in the case related to the sacking of the company’s Indian Premier League (IPL) franchise team.
A DCHL lawyer gave this information. The arbitrator made the decision to dismiss the franchise illegal. The BCCI had designed the IPL T20 cricket tournament in 2008. At that time DCHL was declared a successful bidder for Deccan Chargers Hyderabad.
A ten-year agreement was signed between Deccan Chargers and BCCI. The lawyer said that on August 11, 2012, the BCCI gave a show cause notice to cancel the franchise of DCHL. The cancellation of the franchise was confirmed one day before the completion of the 30-day time to respond to the notice.
After this DCHL went to Bombay High Court. On September 2012, the court appointed retired Supreme Court judge CK Thakkar as a single arbitrator to decide the case. The arbitrator on Friday termed the decision to cancel the franchise as illegal and directed the DCHL to pay compensation of Rs 630 crore and compensation of Rs 4,160 crore. However, the BCCI can challenge the arbitrator’s decision in the Bombay High Court.