BCCI is likely to challenge the arbitrator's order before the Bombay High Court.
A Bombay high court-appointed arbitrator on Friday awarded over Rs 4,800 crore to Deccan Chronicles Holding Ltd (DCHL) in its dispute against the Board of Control for Cricket in India over termination of the company's Indian Premier League franchise team in 2012, a DCHL lawyer said.
The arbitrator held the termination of the Deccan Chargers franchise as illegal, the lawyer added.
DCHL successfully bid for the Deccan Chargers from Hyderabad ahead of the inaugural edition of IPL in 2008 for $107 million (Rs 425 crore) for 10-year period. They won the second edition of IPL in 2009 in South Africa under Adam Gilchrist’s captaincy.
But on August 11, 2012, the BCCI issued a show-cause notice for termination of the franchise to DCHL and the termination was confirmed a day before expiry of the 30-day period granted to respond to the notice, the lawyer said.
DCHL then approached the Bombay High Court against the termination of the franchise, following which in September 2012, retired Supreme Court Justice C K Thakker was appointed as the sole arbitrator to decide the matter.
"The sole arbitrator on Friday upheld the termination to be illegal and granted damages to the tune of Rs 630 crores and compensation to DCHL to the tune of Rs 4160 crores.
"DCHL has also been granted Rs 36 crore as an admitted amount payable under the Franchise Agreement," said Maneesha Dhir, Managing Partner of Dhir & Dhir Associates, who appeared for DCHL.
BCCI is likely to challenge the arbitrator's order before the Bombay High Court.
