Big Setback For Richest Cricketing Body In Kochi Tuskers Case: 5 Points
In a major blow to the Board of Control for Cricket in India (BCCI), the richest and most influential cricketing body in the world, the Bombay High Court upheld arbitral awards exceeding Rs 538 crore in favor of the now-defunct IPL franchise Kochi Tuskers Kerala. The BCCI is the organising body of Indian Premier League (IPL), one of the most watched sporting events in the world. The ruling, delivered on June 17, 2025, dismissed BCCI’s challenge to the 2015 arbitral tribunal’s decision, marking a significant setback for the world’s richest cricketing body. The dispute stems from BCCI’s termination of Kochi Tuskers’ contract in 2011, citing a breach over a bank guarantee. Justice RI Chagla ruled that the arbitrator’s findings were sound, reinforcing the franchise’s claim of wrongful termination.
The IPL franchise was owned by Kochi Cricket Private Limited (KCPL), a consortium led by Rendezvous Sports World (RSW). Key stakeholders included Anchor Earth, Parinee Developers, and others, with RSW holding a 26% stake. The franchise, acquired for Rs 1555 crore, operated only in 2011.
Wrongful Termination Claim Upheld:
The Bombay High Court confirmed that BCCI’s termination of Kochi Tuskers in 2011 was a repudiatory breach of contract. KCPL and RSW argued the termination was unjust, citing issues like stadium unavailability and BCCI’s continued engagement post-deadline. The court found BCCI’s actions disproportionate.
Massive Financial Award:
The arbitral tribunal in 2015 awarded Rs 384.83 crore to KCPL for lost profits and Rs 153.34 crore to RSW for wrongful encashment of a bank guarantee, totaling over Rs 538 crore with interest. The court’s ruling mandates BCCI to pay this amount, a significant financial hit.
BCCI’s Challenge Dismissed:
BCCI contested the arbitral award, claiming the damages were excessive and the arbitrator overstepped. Justice Chagla dismissed these pleas, stating courts cannot re-evaluate evidence under Section 34 of the Arbitration Act. BCCI’s attempt to challenge the arbitrator’s findings was deemed beyond judicial scope.
Kochi Tuskers’ Short IPL Stint:
Kochi Tuskers Kerala, acquired for Rs 1555 crore in 2010, played only the 2011 IPL season. Operated by KCPL and led by RSW, the franchise faced issues like regulatory approvals and match reductions, which they argued contributed to their inability to meet BCCI’s terms.
Implications for BCCI:
This ruling dents BCCI’s financial and reputational standing. The Rs 538 crore payout, coupled with interest, strains its resources. The verdict may prompt BCCI to review franchise agreements and termination clauses, potentially impacting future IPL operations and its approach to dispute resolution.
