MUMBAI: The Supreme Court has struck down the Special Leave Petition filed by Deccan Chronicle Holdings Limited‘s to stay the termination of its IPL team Deccan Chargers by the BCCI thereby dashing all hopes for the media company to get back the team and sell it to pay off debt.

The bench headed by Chief Justice Altamas Kabir dismissed DCHL‘s plea seeking extension till 25 October for furnishing Rs 1 billion bank guarantee. The bench also comprised Justice SS Nijjar and Justice J Chelameswar.

DCHL had moved Supreme Court against Bombay High Court‘s order of setting aside the status quo order passed by the Bombay High Court. However the apex court declined to interfere with High Court‘s decision.

The apex court also accepted BCCI‘s submission that the termination of contract has come to effect from 12 October, the deadline set by Bombay High Court for DCHL to furnish bank guarantee.

The Court had on 9 October extended deadline by three days to allow DCHL more time to furnish bank guarantee while warning that failure to do so would mean that the BCCI‘s termination of Deccan Chargers would stand.

"The position today stands that the agreement between Deccan Chargers and BCCI is terminated and the effect of extension of time to deposit the bank guarantee will amount to forcing the contract," the bench said.

"It has been pointed out by the BCCI about the fact of termination of contract which is effective from October 12. In such circumstance we are not inclined to entertain the Special Leave Petition (SLP)."

The Bench, however, added that the order will not affect the arbitration proceedings between the Deccan Chargers and the BCCI. The Bombay High Court had last month appointed CK Thakkar as the arbitrator to look into the legality of the termination of Deccan Chargers termination from IPL.

DCHL through senior advocate Mukul Rohatgi contended that it should be given a chance to furnish the bank guarantee by 25 October. BCCI‘s counsel CA Sundaram opposed DCHL‘s plea saying that the media company was heavily indebted and had failed to meet the obligation towards banks and financial institutions.

Earlier, the Bombay HC had refused to grant any interim relief to DCHL against termination of its franchise agreement by the BCCI.

Justice RD Dhanuka had quashed the status quo order passed by the arbitrator contending that the arbitrator is not "superior" to the high court and cannot pass an order which overrides the high court‘s direction.

The arbitrator had passed an order directing BCCI not to go ahead with its termination of Deccan Chargers following which the BCCI challenged the order in High Court and secured a stay.

With termination notice standing, the DCHL‘s attempt to sell the franchise to Mumbai-based real estate firm Kamla Landmarc proved a non-starter. Kamla Landmarc is believed to have committed Rs 12.5 billion for acquiring the franchise.