HC tells Chargers to give Rs 100 cr bank guarantee

Published: Tuesday, October 2, 2012, 12:31 [IST]
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HC to DC: Give Rs 100 cr bank guarantee

Mumbai, Oct 2: Bombay High Court (HC) asked Deccan Chronicles Holdings Limited (DCHL) on Monday to give an irrevocable and unconditional bank guarantee of Rs 100 crore to BCCI on or before October 9 while observing that the cricket board acted in haste to terminate IPL franchisee Deccan Chargers.

The bank guarantee would be in force for a period of one year, said Justice S J Kathawala hearing a petition by DCHL challenging the BCCI decision to terminate the contract of the cash-strapped Hyderabad franchisee. BCCI had taken the decision last month at an emergency meeting of the IPL governing council in Chennai.

HC further observed that DCHL shall bear all expenses for IPL 6, such as making payments to BCCI, players and support staff. Besides, it shall bear the cost of conducting matches, the judge ruled.

In the event of default on the part of DCHL, BCCI shall be entitled to invoke the bank guarantee to the extent necessary, Justice Kathawala said.

The court had appointed on September 26 retired Supreme Court judge C K Thakkar arbitrator to resolve within three months the dispute between BCCI and DCHL over termination of the Deccan Chargers franchisee.

However, pending arbitration, the judge asked BCCI on Monday to not act on termination of the franchisee agreement for seven days. HC clarified this order would immediately cease to be in effect if DCHL failed to furnish the bank guarantee.

The court ruled that DCHL shall pay the undisputed outstanding dues of hotels, transportation, etc, as regards IPL-5 on or before October 31. "However, this order shall not preclude BCCI from adding one more franchise for IPL-6 or thereafter. I am of the view that BCCI has at all stages acted in haste in terminating the franchisee agreement with DCHL," the judge remarked.


Read more about: deccan chargers, bcci, ipl
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