In fresh setback for debt-ridden Deccan Chronicle Holdings Ltd, the Bombay High Court today stayed the order of the arbitrator, who had yesterday granted status quo on the Cricket Board’s decision to terminate its franchise Deccan Chargers.
The stay was granted by Justice R D Dhanuka on an appeal filed by BCCI under section 37 of Arbitration and Conciliation Act.
The arbitrator appointed by the Bombay High Court, retired Supreme Court Judge, C K Thakkar, in his first meeting yesterday, passed an order granting status quo till October 17 on the decision of BCCI to terminate the franchise. Being aggrieved, the Cricket Board moved the High Court today and secured a stay.
The court will hear the matter again on October 17.
Cash-strapped DCHL had yesterday failed to give a Bank Guarantee of Rs 100 crore to BCCI, a condition set by the High Court for continuance of the beleaguered franchise in the league. The DCHL had sought time till October 15 to file a bank guarantee but the High Court refused to extend the deadline.
The court had on October 1 asked DCHL to give the bank guarantee which would be in force for a period of one year. The judge had also observed that BCCI had at all stages acted in haste in terminating the franchise agreement with DCHL and not granted it time to cure the defects.
Being aggrieved, BCCI had filed an appeal against the October 1 order of the High Court which is likely to come up for hearing before a division bench headed by Chief Justice Mohit Shah on October 15.
BCCI had on September 15 taken the decision to terminate the contract at an emergency IPL Governing Council meeting in Chennai which was challenged by DCHL in the Bombay High Court.
The court had on October 1 ordered DCHL to bear all expenses for IPL 6 including making payments to BCCI towards franchise, players and support team costs. Besides, it was asked to bear the costs of conducting matches and other expenses.
In the event of any default on part of DCHL, BCCI shall be entitled to invoke the bank guarantee to the extent necessary, Justice Kathawala had ruled.
The court had on September 26 appointed retired Supreme Court judge C K Thakkar as arbitrator to resolve within three months the dispute between BCCI and DCHL over the termination of Deccan Chargers franchise.
However, pending arbitration proceedings and making up of an award by the arbitrator, the judge had asked the BCCI not to act on the termination of the franchise agreement for a period of seven days, if the award is in their favour.
The judge had, however, clarified that the September 26 order would immediately cease to be in force if DCHL fails to furnish the bank guarantee. That deadline ended last evening at 5 pm and apparently meant the end of the road for Deccan Chargers.
However, court-appointed arbitrator Justice (retd) Thakkar, meanwhile, ordered maintaining status quo. The arbitrator’s order was today stayed by Justice Dhanuka.