The High Court here today cleared the decks for the Rajasthan Royals franchise to participate in the fourth round of the Indian Premier League (IPL) cricket tournament.
The Court dismissed an appeal by the Board of Control for Cricket in India (BCCI) challenging the stay by the arbitrator and allowed Rajasthan Royals to participate in the IPL 4 auction that will be held on January 8 and 9.
BCCI had on October 10 terminated the franchisee agreement with Rajasthan Royals after the team allegedly committed a breach of contract by changing its corporate structure without BCCI’s consent. Rajasthan Royals had on October 26 approached the high court challenging the BCCI move. However, the case was kept on hold, with both parties agreeing to resolve the matter through arbitration.
On November 30, Justice B N Srikrishna, who was acting as the arbitrator, granted injunction in Rajasthan Royals’ favour by staying the termination of its contract. BCCI had challenged the aribitrator’s before the high court.
The Court, however, imposed a condition on Rajasthan Royals directing the francise to file an affidavit before it by January 3, specifying full details of its ownership pattern and mode of control.
“It is necessary that the bonafides of the three owners-Emerging Media (IPL) Ltd, Tresco International and Bluewater Estates Ltd, is established. BCCI is entitled to call for full disclosure of ownership under the franchisee agreements,” the court observed.
Apart from specifying the mode of control, the affidavits should also include a statement from all three company owners that they are in full control of their investment companies. The court also directed Rajasthan Royals to submit $2.83 million as guarantee to the BCCI for the contract and $18 million as bank guarantee for the players.
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The arbitration proceedings shall continue unless BCCI approaches the Supreme Court challenging the stay.
BCCI had also terminated the franchisee agreement of another team, Kings XI Punjab, on October 10, holding the franchise guilty of violating the franchise agreement on three counts. The biggest offence was that the ownership had changed twice in the first three years of the league — something that went unreported to the Indian board.
Kings XI Punjab has since obtained an interim stay order issued by the Bombay High Court on the termination of the franchise from IPL. BCCI has appealed in the court against the interim stay order, a decision on which is pending.