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Supreme Court Rebukes High Court's Role in Revenue Department Case

MUMBAI, INDIA, JUN 18 – The court ruled BCCI's termination of Kochi Tuskers Kerala was wrongful and upheld a Rs 538 crore award, marking a major legal precedent in IPL franchise disputes.

  • On June 17, 2025, the Bombay High Court rejected BCCI's petition and confirmed the decision requiring the board to compensate Kochi Tuskers Kerala with a total amount of Rs. 538.84 crore following the franchise's termination from the IPL.
  • This followed BCCI's 2011 termination of Kochi Tuskers Kerala's franchise for failing to provide mandatory bank guarantees, which KCPL and RSW challenged as wrongful in arbitration.
  • The arbitrator ruled BCCI wrongfully invoked the bank guarantee, causing repudiatory breach, and awarded Rs. 384.83 crore plus interest to KCPL and Rs. 153.34 crore to RSW by 2015.
  • Justice Riyaz I. Chagla emphasized that the court’s authority to review arbitral awards is narrowly confined by the Arbitration and Conciliation Act, and stated that BCCI’s disagreement with the interpretation of evidence does not justify overturning the award.
  • The ruling permits KCPL and RSW to withdraw deposited amounts and marks a significant legal setback for BCCI over a dispute spanning more than a decade.
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India Today broke the news in India on Wednesday, June 18, 2025.
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