The Bombay High Court today rejected IPL franchise Kochi Tuskers Kerala's plea seeking to restrain the Board of Control for Cricket in India (BCCI) from encashing or enforcing its bank guarantee of Rs 154 crore.
"I refuse to give any relief and I am rejecting the application," Justice SF Vajifdar said in a brief order, the details of which would be given later.
On September 19, the BCCI had terminated the contract of Kochi Tuskers Kerala for alleged breach of contractual terms, prompting the IPL franchise to move the High Court.
The BCCI had announced two days ago that it had decided to encash or enforce the bank guarantee of Kochi Tuskers in their possession and also terminate the franchise as they had allegedly breached the contractual terms.
The consortium, which was mired in a bitter ownership dispute since its very inception, had defaulted on a Rs 154 crore annual payment it was to make despite repeated reminders from the IPL authorities.
Kochi Tuskers chairman Mukesh Patel had reacted sharply to BCCI's decision to terminate the franchise, saying they had not defaulted.
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He said BCCI would pay them Rs 12-15 crore next month as part of central revenue.
Patel had further said that BCCI did not cut down franchise fees despite reducing the number of matches in IPL 4 from 94 to 74 due to packed international calender.
"The number of games in Tender Document was 94, they then reduced it to 74 but did not reduce the franchise fees."
The franchise, which was bought for Rs 1,550 crore, was supposed to make the yearly payment for next 10 years.
Kochi's termination means the 10-team tournament would now be reduced to nine for the next season.