Arbitrator awards more than Rs 4,800 crore to DCHL in dispute with BCCI

An arbitrator on Friday awarded over Rs 4,800 crore to Deccan Chronicles Holding Ltd (DCHL) in its dispute against the Board of Control for Cricket in India (BCCI) over termination of the company's Indian Premier League (IPL) franchise team, a DCHL lawyer said.

The arbitrator held the termination of franchise as illegal, the lawyer said.

After the BCCI conceptualised IPL T20 tournament in 2008, DCHL was declared successful bidder for the Deccan Chargers franchise from Hyderabad, and an agreement was signed between Deccan Chargers and the BCCI for 10 years.

But on Aug. 11, 2012, the BCCI issued a show-cause notice for termination of the franchise to DCHL and the termination was confirmed a day before expiry of the 30-day period granted to respond to the notice, the lawyer said.

DCHL then approached the Bombay High Court claiming that the termination was arbitrary. The HC in September 2012 appointed retired Supreme Court Justice C K Thakker as the sole Arbitrator to decide the matter.

"The sole arbitrator on Friday upheld the termination to be illegal and granted damages to the tune of Rs 630 crores and compensation to DCHL to the tune of Rs 4,160 crores.

"DCHL has also been granted Rs 36 crore as an admitted amount payable under the Franchise Agreement," said Maneesha Dhir, Managing Partner of Dhir & Dhir Associates, who appeared for DCHL.

BCCI can challenge the arbitrator's order before the Bombay High Court.