New Delhi: On Friday, the Supreme Court bench of Justice AK Goel and Justice Indu Malhotra has directed the Board of Control for Cricket in India (BCCI) to deposit Rs. 100 crore as a condition for a stay of an arbitral award against it in favour of Kochi Cricket Pvt. Ltd.
The verdict in the matter is to be given in 12 weeks.
The observation came while hearing the appeal filed by Kochi owners. The matter pertains to an arbitral award of Rs. 800 crores, passed by retired Supreme Court judge Justice RC Lahoti in favour of Kochi. Justice Lahoti was appointed as sole arbitrator in the case, who delivered two awards dated June 22, 2015 against the BCCI (appellant) and in favour of the Tuskers (respondents).
The RC Lahoti headed panel in its award had directed BCCI to pay Rs 550 crore as compensation with 18% annual penalty on failing to do so.
The BCCI had challenged the award by filing an application under Section 34 before the Bombay High Court.
In response to BCCI's application, the Bombay High Court stayed the arbitral award following which the Kochi Cricket moved the Supreme Court.
On 19 September 2011, BCCI President Shashank Manohar decided to terminate Kochi contract, following his decision, the BCCI announced that the Kochi Tuskers Kerala IPL franchise was terminated for breaching its terms of agreement as it defaulted on an annual payment of Rs.156 crore as a bank guarantee.
This meant that the 2011 IPL season was the only season in which the Kochi team participated.
Last month, the Supreme Court in the matter involving the BCCI and Kochi Cricket Pvt Ltd ruled that the amended Section 36 in the arbitration and conciliation act will now be applicable to the facts of the case between the cricket Board and the terminated IPL franchise.
Feeling that the original arbitration order was unjust, the BCCI immediately agreed to deposit the amount.