However, Rajasthan Royals seemed in an upbeat mood after the order with a spokesperson saying that the ruling has paved the way for it to take part in player auctions and IPL 4 next year.
"We are extremely humbled by the ruling of the honourable judge. This has strengthened the faith amongst our players, sponsors, and all our fans. We look forward to an exciting and successful IPL season 4," said Royals Chief Marketing Officer and spokesperson Raghu Iyer.
"The implications of the award is that Rajasthan Royals can continue its participation in IPL season 4 and hold all its rights such as retention of players, participating in the forthcoming player auctions, executing sponsorship deals etc," said the statement issued on behalf of the Royals.
IPL 4 is scheduled to commence six days after the end of the ICC Cricket World Cup on April 2 while the player auctions are to be held on January 8 and 9.
"This order would be in binding till the end of the final arbitration award and additionally six weeks thereafter," it added.
However, with Srikrishna withdrawing from the case on Wednesday, a Royals official said that they would sought for a new arbitrator from the court.
The BCCI had on October 10 decided to terminate the franchise agreement of Rajasthan Royals, along with that of Kings XI Punjab, for alleged breach of agreement by the two franchises.
Royals had challenged the termination before the Bombay High Court.
However, the case in the High Court was kept pending as both the parties agreed to resolve the matter through arbitration.
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