Mumbai: Oct 12, 2012
Cash-strapped Deccan Chronicles Holdings Ltd (DCHL) on Friday failed to give Rs 100 crore Bank Guarantee to Board of Control for Cricket in India (BCCI) as directed by the Bombay High Court after which the BCCI is free to take action on its earlier decision to terminate its Indian Premier League (IPL) franchise Deccan Chargers.
DCHL sought an extension to today's deadline until October 15 to submit an "irrevocable and unconditional" Bank Guarantee but the High Court refused to grant further time.
Justice S J Kathawala declined to give them more time, saying the earlier deadline of October 9 had been extended by three days to accommodate them.
Meanwhile, the BCCI, as per high court order, is free to take action, if it so desires, on its earlier decision to terminate the IPL contract of the Hyderabad franchise.
The court had on October 1 asked DCHL to give the bank guarantee which would be in force for a period of one year.
Board of Control for Cricket in India had in September taken the decision to terminate the contract after an emergency IPL Governing Council meeting in Chennai. The DCHL had moved the Bombay High Court challenging the termination.
The court had at an earlier hearing ordered DCHL to bear all expenses for IPL 6 including making payments to BCCI towards franchise, players and support team costs. Besides, it was asked to bear the costs of conducting matches and other expenses.
In the event of any default on part of DCHL, BCCI shall be entitled to invoke the bank guarantee to the extent necessary, Justice Kathawala had said.
The court had on September 26 appointed retired Supreme Court judge C K Thakkar as arbitrator to resolve within three months the dispute between BCCI and DCHL over the termination of Deccan Chargers franchise.
However, pending arbitration proceedings and making up of an award by the arbitrator, the judge asked the BCCI not to act on the termination of the franchise agreement for a period of seven days, if the award is in their favour.
The judge had, however, clarified that the September 26 order would immediately cease to be in force if DCHL fails to furnish the bank guarantee.
Earlier in the day, the DCHL had informed the Bombay Stock Exchange about its decision to sell the IPL franchise to a Mumbai-based real estate firm Kamla Landmarc Real Estate Holdings Ltd for an undisclosed sum.
"Pursuant to its meeting of the board of directors held on October 11, it was resolved to authorise the board of directors to sell, transfer or dispose of the Deccan Chargers Franchise business undertaking, business division of the company to Kamla Landmarc Real Estate Holdings Private Limited," DCHL said in a filing to the BSE.
Now that the Cricket Board is free to go ahead with the termination of the franchise, the fate of the proposed sale is uncertain.
It is also unclear how the players of the Deccan Chargers would get their payments. (PTI)