Bombay HC directs BCCI, DCHL to appoint arbitrator

MUMBAI: The Bombay High Court has suggested that the BCCI settle its dispute with financially distressed Deccan Chronicle Holdings Limited, the owner of IPL franchise Deccan Chargers, through arbitration by appointing a mutually acceptable arbitrator.

The counsels of both the parties told the high court that they would seek instructions from their respective clients and place the name of their choice of arbitrators before the court. In case, the two parties fail to arrive at a consensus, the court may appoint an arbitrator to resolve the issue.

The high court had earlier directed BCCI to maintain status quo and not to invite bids for a new franchise to replace Deccan Chargers in the Indian Premier League (IPL).

The court also deferred DCHL?s petition challenging BCCI?s decision to terminate the franchise till Tuesday. The BCCI had terminated Deccan Chargers? contract after the franchise rejected the lone bid to acquire the team.

The BCCI argued that the franchise has not paid the players and it has over Rs 40 billion debt from over 20 banks and financial institutions. This would hamper the franchise?s ability to run the team, which requires an investment of around Rs 1.5 billion every year, the BCCI said.

BCCI was also concerned about Deccan Chargers? ability to renew contracts of players when it has failed to clear the dues of existing players.

Deccan Chronicle counsel Zal Andhyarajunam assured that the financially distressed company would meet its obligations. He also alleged that the BCCI terminated its franchise agreement abruptly without giving them proper representation to present their views.

He said that the media company doesn?t have any debt to pay immediately. The DCHL counsel said installments are due in October, November and December.

The hearing will continue tomorrow when both the parties are expected to suggest names for appointment as an arbitrator.