COMPENSATION PACKAGE

SC orders BCCI to deposit 100 Cr. for stay of arbitral award to KTK

by Cricbuzz Staff • Last updated on

AK Goel and Indu Malhotra hearing the case ruled it in Kochi Tuskers' favour, asking the board to deposit 100 crore for stay © Getty

The Supreme Court of India, on Friday (May 11), ordered the Board of Control for Cricket in India to deposit INR 100 crore for stay of arbitral award in favour of the now defunct IPL franchise, Kochi Tuskers Kerala, as a part of the compensation package for the termination of the franchise in 2011.

The franchise had been terminated for an alleged breach of contract then with the BCCI instructing them to submit a fresh bank guarantee in six months' time. However, with KTK failing to do so, the board had encashed their bank guarantee worth INR 156 crore despite the franchise objecting them. The owners of the franchise had then successfully challenged the BCCI's decision to encash the bank guarantee and won the arbitration case in 2015.

The SC panel headed by RC Lahoti had ordered the BCCI to pay up to INR 550 crore along with 18 per cent annual penalty which further eventuated into 800 crore in the coming days. BCCI then filed a Section 34 application before the Bombay High Court following which the court had stayed the arbitral award unconditionally.

KTK though moved the apex court, as Justices AK Goel and Indu Malhotra hearing the case ruled it in the franchise's favour on Friday, also asking the board to deposit 100 crore for stay of the arbitral award. Alongside that, the court also asked for Section 34 to be removed with immediate effect.

© Cricbuzz

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