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indiantelevision.com Team
MUMBAI: The Bombay High Court has quashed all hopes for cash-strapped Deccan Chronicles Holdings Limited (DCHL) by setting aside the status quo order passed by the arbitrator granting relief to its IPL team Deccan Chargers.
In a double whammy, the court had also refused to grant any interim relief to DCHL against termination of its franchise agreement by the BCCI. The Court said that the legality of the termination would be decided by the arbitrator.
With this order, Deccan Chargers termination from IPL stands as was the case on 12 October when the franchise had failed to furnish Rs 1 billion bank guarantee following which it was ousted from the season 6 of IPL.
Justice RD Dhanuka quashed the status quo order passed by the arbitrator after hearing a petition filed by the Board of Control for Cricket in India (BCCI). While passing the order, Justice Dhanuka said that the arbitrator is not "superior" to the high court and cannot pass an order which overrides the high court?s direction.
"Arbitrator had no jurisdiction to grant status quo. On the same day (12 October), the high court had denied extension of time to DCHL to furnish Rs 100 crore (Rs 1 billion) bank guarantee as directed by the court on October 1," Justice Dhanuka said.
He also said that once the Court has rejected relief, the plea made before the arbitrator is not maintainable.
Justice Dhanuka also noted that the order passed by Justice SJ Kathwala on 1 October directing DCHL to furnish bank guarantee was "self operative and protective of the interests of both DCHL and BCCI".
He refused to grant any relief to DCHL since it has still not been able to furnish bank guarantee. "DCHL has still not furnished bank guarantee. Hence there is no change in circumstances to grant relief to DCHL. No case is made out for interim relief for granting stay on termination. The application seeking stay is a gross abuse of law," Justice Dhanuka said.
The DCHL had on Wednesday requested the court to grant relief contending that the termination of Deccan Chargers was not anybody?s interest whether it is owners, players or lenders. It also pointed out that DCHL has till now invested Rs 6 billion in the franchise.
Retired Supreme Court Judge C K Thakkar, who was last month appointed as the arbitrator, had passed an order last week directing BCCI not to go ahead with its termination of Deccan Chargers following which the BCCI challenged the order in High Court and secured a stay.
Backed by its lenders, DCHL had said that it was ready to furnish bank guarantee by 9 October as directed by the court on 1 October. However, it could not furnish bank guarantee by the designated time following which the court granted it three more days to furnish the amount.
Despite extension of deadline, DCHL was unable to furnish irrevocable and unconditional bank guarantee of Rs 1 billion by 12 October which led to its termination from the IPL after the court refused to grant more time to DCHL to furnish bank guarantee.
The Court had said in its 1 October order that the BCCI?s termination notice would stand if DCHL fails to furnish bank guarantee. The interim relief provided by the arbitrator also proved short lived as the court stayed the status quo order passed by the arbitrator extending deadline for submitting bank guarantee.
With termination notice standing, the DCHL?s attempt to sell the franchise to Mumbai-based real estate firm Kamla Landmarc proved a non-starter. Kamla Landmarc is believed to have committed Rs 12.5 billion for acquiring the franchise.
The DCHL plea comes on a day when IPL Governing Council is meeting in Mumbai to discuss the termination of Deccan Chargers and the fate of the players since 31 October is the deadline for resigning players.
Earlier, the BCCI had floated tenders for a new franchise after terminating Deccan Chargers.The tender notice for a fresh franchise invites bids in respect of 12 cities including Ahmedabad, Cuttack, Dharamsala, Indore, Kanpur, Kochi, Nagpur, Noida, Rajkot, Ranchi, Hyderabad and Visakhapatnam.
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