Miffed BCCI moves court against arbitrator's 5-day relief to Deccan Chargers

MUMBAI: The Board of Control for Cricket in India (BCCI) has challenged arbitrator CK Thakkar‘s status quo order in the Deccan Chargers case saying that the latter has exceeded his jurisdiction by issuing that order.

The arbitrator had on Friday added a new twist to the legal battle by throwing a lifeline to the financially ailing Deccan Chronicle Holdings Limited (DCHL), the parent company of Deccan Chargers by granting it time till 17 October to furnish bank guarantee.

The arbitrator had yesterday held its first meeting with the two parties since being appointed by the Bombay High Court to look into the dispute and decide whether BCCI was justified in terminating agreement with Deccan Chargers.

The court had on 1 October passed an order directing DCHL to furnish the bank guarantee within 10 days to stay in the IPL. It had also clarified that the order will cease to be in effect after DCHL fails to furnish the bank guarantee and the BCCI‘s 14 September termination notice will stand.

However the media company had sought a three-day extension on the last day of the deadline to furnish bank guarantee following which the court gave it three more days to do the same.

The three day deadline seemed too little for the beleaguered franchise as it failed to furnish an irrevocable and unconditional bank guarantee within the deadline which led to its termination from the IPL until the arbitrator granted relief by extending the deadline.

The Bombay HC had refused to grant any extension to DCHL amidst objection from BCCI counsel by saying that it has already accommodated the company‘s request once.

The termination and the subsequent relief came after the DCHL announcement that it has got a buyer in Mumbai-based Kamla Landmarc Real Estate Holdings Private Limited, which according to reports is ready to fork out Rs 10 billion for buying the team.

DCHL informed the bourses that its board has resolved to "sell, transfer/dispose of the Deccan Chargers Franchise business undertakings/business division of the company to Kamla Landmarc Real Estate Holdings Private Limited".

Earlier, DCHL had rejected Hyderabad-based PVP Ventures‘ Rs 9 billion bid to buy the franchise following which led to the termination of its franchise agreement by the BCCI on 14 September.