Bombay High Court quells Deccan Chargers' arbitration order

 Bombay High Court quashes Arbitrator's order for status quo on BCCI's decision to terminate Deccan Chargers in the case between Deccan Chronicle Holdings Ltd. (DHCL) and the Board of Control for Cricket in India (BCCI).

BCCI had appealed against the status quo ordered by the arbitrator on the cricket board's decision to terminate its franchise Deccan Chargers.

"An arbitrator cannot overrule an order passed by the court," the high court said.


The court had earlier stayed the order of the arbitrator. The stay was granted by Justice R.D. Dhanuka on an appeal filed by the BCCI under Section 37 of Arbitration and Conciliation Act.

“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. Thus, the termination of DC Franchise stands,” the board said in a statement.

The beleaguered owners of Deccan Chargers failed to produce a Rs.100-crore bank guarantee before the high court, a condition that had been set for the struggling team's survival in the league. They later approached the court-appointed arbitrator, retired Supreme Court judge C.K. Thakkar, who had passed the order granting status quo till October 17. However, with this development, the BCCI could not go ahead with the termination of Deccan Chargers from the Indian Premier League (IPL).

Being aggrieved, the cricket board moved the high court and secured a stay.

The company's failure to furnish the guarantee money before the 5 p.m. deadline on Friday effectively meant that the BCCI's termination of the team stood and the board was free to float the tender for a new franchise.