Tanvi Pilane
Published on: March 19, 2022 IST
An Arbitral Award that Upheld the Cancellation of Media Rights by the Board of Control for Cricket in India (BCCI) to World Sport Group (India) for Telecast of the Indian Premier League (IPL) outside the Indian Subcontinent was set aside by the Bombay High Court.
The Board of Control for Cricket in India (BCCI) Alleged that all Agreements of 2009, including the Deed of Mutually Agreed Termination (DMAT), formed part of Fraudulent Composite Transactions that gave them the Right to Terminate the second Media Rights License Agreement (MRLA) with World Sport Group (India) (WSGI).
The Board of Control for Cricket in India (BCCI) then held that it was Entitled to Rescind the Media Rights License Agreement (MRLA) for global rights.
This decision was Challenged by the World Sport Group (India) (WSGI) in Arbitration. 2 of the 3 members of the Tribunal upheld the decision of the BCCI to rescind the Agreement.
This Award was Challenged in the High Court by the World Sport Group (India) (WSGI).
It was contended by the World Sport Group (India) (WSGI) that the Board of Control for Cricket in India (BCCI) benefited to the tune of approximately Rs.1791 crore from the Agreements entered into in 2009.
It was Argued that the failure to consider this was a Fundamental Error on the part of the Arbitration Tribunal.
Justice Colabawalla noted that the Failure to Consider the Fact that the Board of Control for Cricket in India (BCCI) had benefited from these Agreements rendered the award Susceptible to Challenge as it suffers from Patent Illegality, and is, therefore, Liable to be set aside on this Ground alone.
It was noted by the High Court that huge chunks of the Evidence were missed out by the Majority Award.
The Court held, “Such an Award with the greatest of Respect to the Arbitrators who passed the Majority Award, cannot be allowed to stand.