Setback for Deccan Chargers as Bombay HC stays arbitrator's order

MUMBAI: In yet another twist to the legal battle between Deccan Chargers and BCCI, the Bombay High Court has stayed arbitrator‘s status quo order granting more time to Deccan Chronicle Holdings Limited (DCHL) to furnish Rs 1 billion bank guarantee.

The BCCI had challenged arbitrator CK Thakkar‘s status quo order saying that he has exceeded his jurisdiction by issuing that order. Retired Justice CK Thakkar had Friday passed an interim order granting financially ailing DCHL time till 17 October to furnish bank guarantee. The arbitrator‘s order came even as the Bombay High Court had refused to extend deadline after DCHL failed to provide bank guarantee before 5 pm.

The BCCI said today that the termination of Deccan Chargers stands as per the High Court‘s stay order. "Notwithstanding the Hon?ble High Court?s refusal to extend time to DCHL, the Learned Arbitrator passed the Order of Status quo last evening (12.10.2012). BCCI moved an appeal against the Order of Arbitrator and the same was heard today morning. The Hon?ble High Court was pleased to stay the Order of Arbitrator after hearing both the parties," India‘s cricket board said today.

"The termination of Deccan Chargers franchise was challenged in the Hon?ble Bombay High Court by the DCHL pending the arbitration. A Conditional Order of stay was granted by the Hon?ble High Court pending arbitration on 1st October 2012. The condition to give BCCI a Bank Guarantee of a Nationalized Bank for ` 100 Crores by 5.00 p.m. on 12.10.2012 to cover expenses of IPL ? 6, was breached by DCHL," the BCCI said in a statement.

The court refused to grant extension to DCHL since it had already granted one on 9 October by giving the beleagured company three days time to furnish bank guarantee which would helped it book a place in season 6 of the IPL.

The court had on 1 October granted a conditional order of stay pending arbitration after DCHL challenged termination of Deccan Chargers franchise.

The failure to furnish bank guarantee meant that the termination of Deccan Chargers stands even as the company said that it has got a buyer in Mumbai-based Kamla Landmarc Real Estate Holdings Private Limited, which is believed to have committed Rs 10 billion for the beleagured franchise.

The Bombay High Court had on 26 September Justice Thakkar as arbitrator to resolve within three months the dispute between the Cricket Board BCCI and DCHL over termination of the company?s IPL franchise Deccan Chargers.