MUMBAI: Financially distressed media company Deccan Chronicle Holdings Limited (DCHL), the owner of Indian Premier League (IPL) franchise Deccan Chargers, on Wednesday got a breather from the Bombay High Court in its dispute with the Board of Control for Cricket in India (BCCI).

The high court has asked DCHL to furnish an unconditional bank guarantee of Rs 1 billion within 10 days to BCCI, after which the cricket board will revoke termination of the Deccan Chargers franchise contract.

The direction for providing a bank guarantee is the result of BCCI?s apprehension whether DCHL was capitalised enough to run the IPL team. According to BCCI, every IPL franchise requires at least Rs 1.5 billion to run its affairs every year. DCHL disputed this claim saying the amount required is less than what was being quoted by the cricket board.

DCHL counsel Zal Andhyarajunam argued that the franchise fee payable to BCCI is constant every year save for fluctuations in dollar. DCHL had spent Rs 1.03 billion during season 5 of IPL which includes franchise fee of about Rs 470 million.

The high court also paved the way for the arbitration process between DCHL and BCCI by appointing retired Supreme Court judge C K Thakkar as the arbitrator, after the two parties could not reach an agreement on a mutually acceptable arbitrator.

Additionally, DCHL has taken an oath that it will immediately clear dues amounting to Rs 330 million of both Indian and foreign players in the team.

Andhyarajunam also said that a consortium of banks including Yes Bank have agreed to finance DCHL to run the IPL team for the next season of the tournament.

BCCI counsel Rafiq Dada said DCHL?s debt of Rs 42 billion from as many as 20 banks and financial institutions was a matter of grave concern for the BCCI. The BCCI was apprehensive about DCHL?s financial condition to run the IPL team.

The Yes Bank had filed Chamber Summons with the HC to be made a party to the arbitration process. It wanted BCCI to revoke termination of Deccan Chargers contract and deposit Rs 410 million due to Deccan Chargers from BCCI in their account with Yes Bank.

Dada contended that it was not in a position to release the money in Deccan Chargers? Yes Bank account since there had been similar demands from other banks. DCHL has given its nod for BCCI to deposit money due to it into its Yes Bank account.

The BCCI is worried that if the Deccan Chargers was reinstated with support from multiple banks it would be faced with similar claims from banks with each asking the cricket board to deposit funds due to Deccan Chargers into the franchise?s account with them in case of a dispute.

BCCI also stated that DCHL can?t delegate or sub-contract rights granted under franchise agreement to any other party. If they do so it?s a breach of contract, Dada said.

The court assured that it would protect the BCCI from future claims by banks. It also said that the BCCI can invoke bank guarantee in case Deccan Chargers defaults on any payment in future.

The HC had on 17 September directed BCCI to maintain status quo and not invite bids for a new franchise to replace Deccan Chargers in the IPL.

The BCCI had on 15 September terminated the franchise agreement with Deccan Chargers for breach of contract terms. The cricket board had along with DCHL, the owner of Deccan Chargers team, called for bids to sell the Hyderabad-based franchise.

DCHL had rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

If the DCHL manages to furnish a bank guarantee of Rs 1 billion, it will become the third franchise to stage a comeback after a legal battle. Earlier, Rajasthan Royals and Kings XI Punjab were reinstated as franchises after contesting BCCI?s termination notice in court.

MUMBAI: Yes Bank Limited, one of the 28 lenders to the financially distressed Deccan Chronicle Holdings Limited (DCHL), on Tuesday added a new twist to the ongoing court battle between the now defunct Indian Premier League (IPL) team Deccan Chargers and the Indian cricket board.

The bank filed a Chamber Summons before Bombay High Court for it to be made a party to the petition filed by DHCL challenging the Board of Control for Cricket in India (BCCI) decision to terminate the franchise agreement.

In its filing, Yes Bank has pleaded for: 1) withdrawal of BCCI decision to terminate the Deccan Chargers? franchise; 2) deposit whatever amount is due to or receivable by Deccan Chargers from BCCI in their account with Yes Bank; and 3) the BCCI release Rs 410 million due to Deccan Chargers.

The bank said it has issued demand drafts worth Rs 330 million to BCCI for payment of salaries of Deccan Chargers players. The bank informed the court that if its conditions are not met then there was no point in the bank helping Deccan Chargers to clear its dues.

DCHL Counsel Zal Andhyarajunam sought more time to file a reply following which the court decided to hear the matter tomorrow to hear all the parties and pass an order on the plea made by Yes Bank.

On Monday, the high court asked the BCCI and Deccan Chargers to pursue arbitration by appointing mutually acceptable arbitrators. The two parties have to 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 court had on 17 September directed BCCI to maintain status quo and not invite bids for a new franchise to replace Deccan Chargers in the IPL.

The BCCI had on 15 September terminated the franchise agreement with Deccan Chargers for breach of contract terms. The cricket board had along with DCHL, the owner of Deccan Chargers team, had called for bids to sell the Hyderbad-based franchise. DCHL had rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

The Hyderabad-based media company owes about Rs 42 billion to 28 lenders. It has mortgaged everything from prime properties to printing presses and even its trademarks to lenders as it seeks to repay the debt. The promoters of DCHL have also pledged their shares to lenders.

DCHL was banking heavily on Deccan Chargers to repay a large chunk of its debt.

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.

MUMBAI: The Madhya Pradesh Cricket Association (MPCA) was trying to get an Indian Premier League (IPL) franchise to Indore. However, the final decision will be taken by the BCCI and the IPL Governing Council.

MPCA president and union minister of state for commerce and industry Jyotiraditya Scindia said Indore is one of 10 cities shortlisted for a new franchise.

On Monday, the Bombay High Court will hear the Deccan Chargers plea for a stay on the termination of its franchise agreement by the BCCI.

Referring to MP chief minister Shivraj Singh Chouhan?s stand against IPL in the state, Scindia said that there was no need for state government?s support to get the IPL franchise or to play IPL in the state.

He noted that with other franchises like Punjab, Delhi or Mumbai, there is no involvement of state government anywhere.

On the MPCA meeting, Scindia said a decision has been taken to buy land in Indore and Jabalpur division.

"Land at Super Corridor in Indore is our priority. Talks with the Indore Divisional Authority are on and we are hopeful that the state government will co-operate with us. Administration had already allotted around 100 acres land for multi- purpose sports complex at Super Corridor and the MPCA is ready to purchase 25 to 30 acres of land even at market rate".