Who owns deccan chargers ipl

Both these views hinged around a letter signed by Reddy on August 29, In the letter addressed to the BCCI, Reddy accepted a breach of terms of the contract and directed the board to help him find a new buyer for the franchise. But the Chargers later claimed in court that Reddy had been coerced into signing the letter after it was prepared by the BCCI, and that "it was one that no reasonable or prudent man would suggest".

It was followed by an acceptance letter from the BCCI on September 4, thereby creating a wide range of expectations, opinions, and interpretations for both sides in the span of weeks.

The Chargers then challenged the termination in court and were given a month to put up an INR crore guarantee to stay the termination, and failed to do so. After the termination was upheld, the Chargers alleged over the course of many hearings that their termination had been "malafide and malicious". They accused the BCCI of singling them out when other teams had failed to meet even the first instalment for salaries, and had been "found guilty of betting and match-fixing", which they claimed were far more hurtful to the IPL's brand.

In arbitration, the Chargers also pointed out that if the BCCI was concerned about the league's reputation, they could have cleared salaries from this revenue pool, for which there was a provision in the franchise agreements.

Four-thousand crore? In July last year, the arbitrator, Justice Thakkar, found that the termination had been a premature one and that the show-cause notice on August 16, was necessary but the termination was illegal.

He noted that there were several opportunities for the BCCI to act in good faith, particularly with respect to releasing funds owed and the intervention of the banks. He found validity in the Chargers' claims about other teams getting away with worse, and said the compensation was in order. The Chargers' claims were: 1. INR crore for the losses from missing the season, based on factors like loss of central revenue, loss of sponsorship, loss of prize money, loss of brand value and such, 2.

INR crore as compensation for loss of profit from being terminated. The methodology to arrive at that number involved an initial valuation of DHCL, a projection of profits discounted 15 years, loss of the Deccan Chargers brand, and even the bidding prices for the Pune Warriors and the Kochi Tuskers Kerala as reference points. Why has it been set aside now? The BCCI challenged this award. In Justice Patel's order on Wednesday, he said none of the three defaults - not paying players and others, creating charges on assets, and the insolvency event - were "convincingly shown to have been cured or not to exist".

He ruled that the contractual obligation for the Chargers was not to "ensure" payments would be made, but to actually make them and that payments to players are not contingent on receiving revenues from the BCCI.

He also raised doubts on some of the arbitrator's findings, particularly that there had been no discussion around the fact that Reddy's letter asking the BCCI to find buyers, allegedly written by the board's lawyers, was on a DCHL letterhead. He also found that the award ignored a follow-up letter on September 4, from the BCCI, accepting his sale proposal, which was also signed by him. Apart from that, the order pointed out how a joint tender sale process on August 31, - two days after his letter - and a public tender advertisement from DCHL themselves on September 7 that year were ignored in the award.

The court also found the calculations for the award - which the BCCI argued was perverse - to be arbitrary in nature, and flawed to the extent that DCHL's report on its valuation had appeared to come from themselves, and accepted without scrutiny. It said the award was taking a broad view, when it should "at least identify the loss-of-profit component, render some analysis and reasons and then state that a broad view is being taken".

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