Deccan Chronicle Holdings’ last ditch attempt to save its IPL team Deccan Chargers failed as the Bombay High Court on Saturday stayed an arbitrator’s order that provided relief to the debt-laden company on Friday evening.
Having lost the case after its failure to furnish a Rs. 100-crore bank guarantee before the High Court’s deadline, DCHL on Friday got relief as an appointed arbitrator issued a status quo order till October 17.
But the BCCI challenged this in the Bombay High Court, which stayed this order.
Soon after the High Court’s order, a jubilant BCCI announced the termination of Deccan Chargers franchise.
“The termination of Deccan Chargers franchise was challenged in the Bombay High Court by DCHL pending the arbitration.
A conditional order of stay was granted by the High Court pending arbitration on October 1, 2012.
The condition to give the BCCI a bank guarantee of a nationalised bank for Rs.100 crores by 5 p.m. on 12.10.2012 to cover expenses of IPL-6, was breached by DCHL,” the BCCI said in a statement.
“Notwithstanding the High Court’s refusal to extend time to DCHL, the learned arbitrator passed the order of status quo last evening [12.10.2012]. The BCCI moved an appeal against the order of arbitrator and the same was heard today morning. The High Court was pleased to stay the order of arbitrator after hearing both the parties,” the BCCI said adding: “Thus, the termination of DC franchise stands.”
The arbitrator, retired Supreme Court Judge C.K. Thakkar, in his first meeting on Friday, hours after the High Court’s refusal to extend the deadline, passed an order granting status quo till October 17.
The High Court will hear the matter again on October 17.