In the tussle between the BCCI and the Deccan Chargers, the Bombay High Court has ruled that the IPL team should furnish a Rs 100-crore bank guarantee by October 9. But the court also observed that the cricket board took a hasty decision in terminating its contract, reports CNBC-TV18's Ashmit Kumar.
The Bombay High Court had instructed Deccan Chronicle Holdings to furnish bank guarantee to the extent of Rs 100 crore by October 9. This was to satisfy the BCCI's concerns with respect to the financial instability in the group.
If the Deccan Chargers who are to enter IPL-6 default on any payment, the BCCI will be well within its rights to invoke these bank guarantees for settling those dues. Importantly, the Bombay High Court has also observed that all the dues and all the financial commitments of IPL-6 will have to be handled solely by Deccan Chargers.
It also pointed out that any outstanding dues of IPL-5 if any will have to be settled by October 3 by the Deccan Chargers.
Now with respect to the BCCI, the High Court opened a fresh front in the dispute by observing that the Board had to pay Deccan Chargers the fees for media rights. While the BCCI argues that it is are not liable to pay more than Rs 14 crore, Deccan Chargers maintains that the money payable is over Rs 41 crore.
The judgment has not placed any restrictions on the BCCI issuing of fresh tenders for the entry of a new team in IPL-6. The court has also removed any restrictions on the BCCI issuing a fresh termination notice to the Deccan Chargers, if in case a fresh case of insolvency surfaces.
The termination notice still remains a key question that will have to be settled by the High Court-appointed arbitrator with a three-month deadline.
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