The honorable Supreme Court of India has ordered Board of Control for Cricket in India (BCCI) to deposit RS 100cr immediately if they wish to obtain a stay of an arbitral award against it in favor of Kochi Cricket Pvt. Ltd.
An arbitral award of Rs. 800 crore was passed by retired Supreme Court judge Justice RC Lahoti in favor of Kochi earlier. A bench of Justices AK Goel and Indu Malhotra heard the appeal filed by Kochi owners in the matter.
BCCI, on the other hand, had filed a section 34 application for stay on the same in Bombay HC. Challenging the same, Kochi went to SC. Kochi Tuskers owners in 2015 had won an arbitration challenging BCCI decision to encash bank guarantee citing breach of the contractual agreement.
RC Lahoti headed panel had directed BCCI to pay Rs 550 crore as compensation with 18 percent annual penalty for failing to do so.
BCCI has refused to pay the arbitration or take back the franchise in IPL, for the past two years.
The decision to terminate Kochi contract was taken by then BCCI president Shashank Manohar citing breach of franchise agreement, something majority of BCCI officials were against.
"It was one man's obstinacy that is now costing us a bomb. Had Shashank not taken that decision, we could have worked our way out. In fact, before Kochi went to arbitration, they had asked for a compensation of Rs 300 crore. Even then our officials showed arrogance and now we will be forced to shell out more than double,” said an angry BCCI official.
(with inputs from news18.com/cricketnext)