The fate of Deccan Chargers will now be decided by Board of Control for Cricket in India (BCCI) after the Bombay high court on Saturday stayed the status quo order by the court-appointed arbitrator in the former's termination case. It is now upto BCCI to take a final call on considering the offer made by Mumbai based realty firm Kamla Landmarc to take over Deccan Chargers.
However, Deccan Chargers sources indicated that they may explore an option of filing a special leave petition in the apex court. "The termination itself is the subject matter of the arbitration. The Court has allowed three months time for the arbitration process. Now the court has allowed the termination how will the arbitration process take place," sources added.
Incidentally, Kamla Landmarc is believed to have made an offer of Rs 1,100 crore to take over Deccan Chargers. A senior representative of the realty firm, who did not want to be identified, told Business Standard "They are quite confident that BCCI will rule in their favour in a due course of time. In the meanwhile, the company has already put in place the necessary funding arrangement by roping in leading banks and financial institutions." He further noted that Kamla Landmarc's bid was quite sound and there was no money mobilized from politicians with whom the company enjoys good rapport. The company representative did not forget to mention that it carries a good will due to its 30 year long legacy in the realty sector.
The BCCI had moved an appeal against the order of arbitrator, which was was heard today morning. After hearing both the parties, the High Court stayed the order of arbitrator, which effectively means that the termination of the cash-strapped Deccan Chargers franchise stands.
BCCI sources say that the "Board will float a tender for a new team and the announcement will be made soon. Now it is upto BCCI to allow or reject DCHL's offer of selling the team to Kamla Landmarc." Sources noted that even if the tender process takes time, there will be eight teams like the initial seasons.
The BCCI- Deccan Chargers case is stretching like a daily soap with more twists and turns every day. Earlier on Friday, Deccan Chronicles Holdings Ltd (DCHL), the promoters of the Hyderabad franchisee, announced that they got a buyer in Kamla Landmarc for the franchisee. However, it failed to furnish the bank guarantee of Rs 100 crore and Bombay High Court refused it any further extension. It would have resulted in the termination of the contract. But later, the arbitrator, retired Supreme Court judge Justice CK Thakker held his first meeting with both the parties and passed a status quo order till the next hearing.
The High Court had on September 26 appointed Justice Thakker as the arbitrator only to verify whether the termination of the team by BCCI was valid or not. As per BCCI sources he should not have given order on the status of the termination on the first hand.
On October 1, the High Court had announced its order that if DCHL fails to furnish the unconditional bank guarantee within the set deadline of 10 days, it would result in the lapsing of the stay order on the termination. However, DCHL got another extension of three days by the HC earlier this week.
However, leading lawyer following Deccan Chargers case said the arbitration process is on the legality of the termination, whether it is right or wrong. If after the arbitration process it is found wrong, as per the law of the land, they will be compensated in terms of money. But the arbitrator could not stay the termination itself.
Deccan Chargers' contract was terminated by the BCCI on 14 September. BCCI had said that financially beleaguered Deccan Chronicles Holdings Ltd (DCHL) had breached the contract agreement signed in 2008. DCHL has not paid the dues of its players, support staff, associations and other cricket boards.
