The Supreme Court Friday dismissed a petition by the Deccan Chronicle Holdings Ltd against the Bombay High Court order terminating the lease of Deccan Chargers, a team in the Indian Premier League.
A bench of Chief Justice Altamas Kabir, Justice S.S. Nijjar and Justice J. Chelameswar said: “We are not inclined to entertain the SLP (special leave petition) and it is dismissed. However, the arbitration will continue with proceedings.”
Dismissing the plea, the apex court’s order said: “This SLP by the Deccan Chronicle Holding Ltd., which runs the IPL team Deccan Chargers, against the interim order passed by the Bombay High court October 18, 2012, whereby an order passed by the arbitrator to maintain the status quo was quashed.”
The Bombay High Court by its Oct 1, 2012, order had directed the Deccan Chronicle Holding Ltd. to furnish Rs.100 crore irrevocable and unconditional bank guarantee of a nationalized bank to the Board of Control for Cricket in India (BCCI) which should be for one year.
However, the high court had clarified that its order will cease to be in effect in the event of DCHL fails to furnish the Rs.100 crore bank guarantee.
The validity of this order, which was up to Oct 9, was extended by the high court till Oct 12 on a plea by DCHL.
On Oct 12, the DCHL moved an application on which arbitrator Justice C.K. Thakkar, a former apex court judge, ordered status quo. BCCI challenged this order of status quo before the Bombay High Court which quashed it resulting in the termination of the Deccan Charges franchise.
Counsel Mukul Rohtagi, who appeared for the DCHL, told the apex court that if they were not given extension of time for furnishing the bank guarantee, then they would lose everything.
Opposing the plea by the DCHL, senior counsel C.A. Sundram told the court that the petitioner DCHL had not paid to the cricketing body, the supplier and now they are levelling charges.
Sundram told the court that BCCI has terminated the lease of Deccan Chargers and any extension for furnishing the bank guarantee would amount to resurrecting the terminated lease.