Home > News >

Deccan Chargers’ termination order stands, confirms BCCI

IPL franchise Deccan Chargers sold

Mumbai based real-estate company Kamla Landmarc bought the Hyderabad franchise © AFP

Mumbai: Oct 13, 2012 

 

After a month long legal battle, the cash-strapped Deccan Chargers lost its status as an IPL team after the Bombay High Court stayed the order of Arbitrator for maintaining status quo on the matter till further hearing.

 

The beleaguered owners of Deccan Chargers had yesterday failed to produce a Rs 100-crore bank guarantee before the Bombay High Court, a condition that had been set for the struggling team’s survival in the league. They later approached the Court-appointed Arbitrator who had passed the order of status quo.

 

“BCCI moved an appeal against the Order of Arbitrator and the same was heard today morning. The Hon’ble High Court was pleased to stay the Order of Arbitrator after hearing both the parties”, the BCCI said in a  statement.

 

“Thus, the termination of Deccan Chargers franchise stands”, the BCCI said, ending the uncertainty on the fate of the team which has run into huge financial problems.

 

Deccan Chronicle Holdings Limited’s failure to furnish the guarantee money before the 5pm deadline yesterday effectively meant that the BCCI’s termination of the team stood and the Board was free to float the tender for a new franchise. But the Arbitrator’s order prvented BCCI from going ahead with its termination process.

 

“The termination of Deccan Chargers franchise was challenged in the Hon’ble Bombay High Court by the DCHL pending the arbitration. A Conditional Order of stay was granted by the Hon’ble High Court pending arbitration on 1st October 2012″.

 

“The condition to give BCCI a Bank Guarantee of a Nationalized Bank for Rs 100 Crores by 5.00 p.m. on 12.10.2012 to cover expenses of IPL 6, was breached by DCHL”, the BCCI statement said. 

 

 DCHL, the owner of the franchise, had on Friday sought an extension to the 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 had declined to give them more time, saying the earlier deadline of October 9 had been extended by three days to accommodate them.

 

The court had on October 1 asked DCHL to give the bank guarantee which would be in force for a period of one year.

 

The BCCI had last month 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 staff. 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.

 

DCHL had on Friday 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. The fate of the deal remained uncertain now.

 

Deccan Chargers was hoping to resolve its financial problems by selling the team but it rejected the sole bid it received at the auction in Chennai on September 13.

 

PVP Ventures Limited, the Hyderabad-based urban infrastructure and film production company, had offered Rs 900 crores but Deccan rejected it finding the terms of payment and the amount unacceptable. DCHL purchased the Hyderabad franchise for Rs 428 crore in 2008. (PTI)

India tour of Australia 2014, Practice matches

Nov 24, 2014 (05:29 IST)   at Glenelg, Adelaide

Pakistan vs New Zealand in UAE, 2014

Nov 26, 2014 (11:30 IST)   at Sharjah

England tour of Sri Lanka, 2014

Nov 26, 2014 (14:30 IST)   at Colombo

Zimbabwe tour of Bangladesh, 2014

Nov 26, 2014 (12:00 IST)   at Dhaka

India tour of Australia 2014, Practice matches

Nov 28, 2014 (05:29 IST)   at Adelaide

More

Hong Kong tour of Sri Lanka, 2014

Nov 24, 2014  at Colombo

Hong Kong won by 2 wkts

Zimbabwe tour of Bangladesh, 2014

Nov 23, 2014  at Chittagong

Bangladesh won by 68 runs

South Africa tour of Australia, 2014

Nov 23, 2014  at Sydney

Australia won by 2 wickets (D/L method)

Hong Kong tour of Sri Lanka, 2014

Nov 22, 2014  at Dambulla

Match abandoned without a ball being bowled

Hong Kong tour of Sri Lanka, 2014

Nov 21, 2014  at Dambulla

Match abandoned without a ball being bowled

Photos

Australia vs South Africa 2014, 5th ODI at Sydney

Videos

AB de Villiers: Disappointed with defeat in Australia

Cricket Australia’s marketing gimmick strips umpires of their independence

Live Updates: IPL 2013 spot-fixing and betting scandal hearing in Supreme Court: BCCI is killing the game, says Supreme Court

Australia’s top form in ODIs: Early warning for teams heading to ICC World Cup 2015

Myth Busting — did Sachin Tendulkar’s rate of scoring become slower in the second half of his career?

Rohit Sharma, Suresh Raina in interesting tussle ahead of India’s Test series against Australia

Australia Australia vs South Africa Australia vs South Africa 2014 Bangladesh Bangladesh vs Zimbabwe Bangladesh vs Zimbabwe 2014 India India tour of Australia 2014-15 South Africa South Africa tour of Australia 2014 South Africa vs Australia South Africa vs Australia 2014 Zimbabwe Zimbabwe tour of Bangladesh 2014 Zimbabwe vs Bangladesh Zimbabwe vs Bangladesh 2014

Daniel Vettori set to make Test comeback in Pakistan vs New Zealand 3rd Test at Sharjah

India Women vs South Africa Women 2014: Chloe Tryon’s half-century earns Proteas two-wicket win in 1st ODI

Australia vs India 2014: Michael Clarke could miss 1st Test if he is unable to start running by November 26

N Srinivasan makes quick visit to Padmanabhaswamy temple

Ranji Trophy 2014-15: Jharkhand announce probables

The first match at the Melbourne Cricket Club

IPL 2013 spot-fixing controversy: N Srinivasan increasingly cornered by Supreme Court’s observations

India vs Australia 2014: Are India as bad overseas as they are made out to be?

Cricket Australia’s marketing gimmick strips umpires of their independence

Australia’s top form in ODIs: Early warning for teams heading to ICC World Cup 2015

Fan of the Day

Niharika Shah

Niharika Shah

681 Posts | 6 Fans

Video Highlights: Virat Kohli vs Australian cricketers

More broadband connections to boost GDP growth in Asia Pacific: GSMA

Here’s why Shahid Kapoor is the perfect find for the Magadheera remake!

4 signs you have vitamin K deficiency

Dilip Kumar dead, claim people on Twitter!

India is becoming our largest overseas market, Xiaomi CEO Lei Jun says

Week by Week Pregnancy Guide – Week 25 of your pregnancy

Also on cricketcountry.com

Play Fantasy Cricket & Win

Cash Daily! Click here