MUMBAI: The financially-distressed owners of IPL franchise Deccan Chargers on Friday failed to provide a bank guarantee to BCCI as directed by the Bombay High Court causing the IPL team‘s termination to continue. The dispute over the termination of the IPL franchise will now be adjudicated by an arbitrator appointed by the court.

Deccan Chronicle Holdings Ltd (DCHL) has, however, found a new buyer for Deccan Chargers in Mumbai-based Kamla Landmarc Real Estate Holdings Private Limited. But it will have to wait for the arbitration proceedings to begin before it can rest easy on its chance of completing its agreement with the real estate developer to sell the Hyderabad-based IPL team. DCHL did not disclose the price at which it has agreed to sell the IPl team to Kamala Landmarc, but reports estimated it to be around Rs 10 billion.

DCHL failed to provide the Rs 1 billion bank guarantee to BCCI (Board of Control for Cricket in India) even after the court granted three additional days on its request, ending the possibility of its team‘s participation in the sixth season of IPL in 2013.

Justice S J Kathawala declined to extend the deadline for furnishing the bank guarantee for the second time saying that it had earlier accommodated DCHL by extending the deadline by three days.

The High Court had on 1 October ruled that the BCCI had acted in haste by terminating the franchise agreement of Deccan Chargers while directing the franchise to furnish an irrevocable and unconditional bank guarantee of Rs 1 billion within 10 days. The court had clarified that the order will cease to be in effect after DCHL fails to furnish the bank guarantee.

Deccan Chargers would have been allowed to participate in the season 6 of the IPL and renew contracts with players had they managed to submit bank guarantee. All the franchises are expected to renew contracts with players before 31 October.

The court has appointed retired Supreme Court judge C K Thakkar as the sole arbitrator to adjudicate in the dispute between BCCI and DCHL. It had directed that the two parties must complete arbitration within three months.

Earlier in the day, DCHL had announced that it has agreed to sell its IPL franchise to Kamala Landmarc. DCHL informed the bourses that its board, which met on Thursday, has resolved to "sell, transfer/dispose of the Deccan Chargers Franchise business undertakings/business division of the company to Kamla Landmarc Real Estate Holdings Private Limited".

The BCCI had on 14 September terminated the franchise agreement of Deccan Chargers after DCHL rejected PVP Ventures lone bid of Rs 9 billion despite the bidder meeting the eligibility criteria of the BCCI. DCHL had rejected the bid by PVP Ventures, also a real estate firm, over payment terms.

PVP Ventures had bid after DCHL under the aegis of the cricket board invited tenders for purchase of the Hyderabad franchise in order to ease its financial difficulties. The sale of Deccan Chargers is critical for DCHL to cut down its debt which is estimated to be in the range of Rs 42 billion.

MUMBAI: The Bombay High Court Tuesday gave the owners of Deccan Chargers three more days to furnish an unconditional and irrevocable bank guarantee of Rs 1 billion in order to secure a place in the season 6 of the Indian Premier League (IPL).

The high court accepted DCHL‘s application seeking extension of time to submit the bank guarantee. IPL team Deccan Chargers? owner Deccan Chronicle Holdings Ltd (DCHL) will now have to furnish the bank guarantee by Friday for its continuation as an IPL franchise.

The court had on 1 October directed Deccan Chronicle Holdings Limited to furnish Rs 1 billion bank guarantee by 9 October. However, the court had also stated that the order will cease to be in effect in the event DCHL fails to furnish a bank guarantee.

The court had directed DCHL to furnish a bank guarantee to allay the fears of the Indian cricket board that the company‘s financial health was not in good shape to run the team, which in turn would have an adverse impact on the IPL.

In response, the BCCI was told that it will be entitled to invoke the bank guarantee in the event of any default on the part of DCHL but only to the extent necessary.

The court had also appointed retired Supreme Court judge C K Thakkar as an arbitrator and had said that the arbitration process be completed within three months.

The court also told the BCCI that it will not act on the termination of franchise agreement pending the arbitration proceedings and making of an award by the arbitrator.

The BCCI had on 14 September terminated the franchise agreement of Deccan Chargers for breach of contract. The contract was terminated after DCHL rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

The cricket board had along with DCHL called for bids to sell the Hyderabad-based franchise in order to help the financially distressed company to find a buyer. The sale of Deccan Chargers is critical for DCHL to cut down its debt which is pegged at Rs 42 billion.

MUMBAI: The Bombay High Court Monday has ruled that the Board of Control for Cricket in India (BCCI) has acted in haste by terminating the franchise agreement of crisis-ridden IPL franchise Deccan Chargers.

However, the HC also gave a green signal to the BCCI to add a tenth new team to the cash rich league.

The court had on 17 September directed BCCI to maintain status quo by not invite bids for a new franchise on a petition filed by DCHL seeking to restrain BCCI to add a new team.

Reiterating what it said on 26 September, the court passed an order directing the franchise to furnish an irrevocable and unconditional bank guarantee of Rs 1 billion on or before 9 October which would be in force for one year.

If DCHL manages to furnish the bank guarantee before the deadline, it will be allowed to participate in the season 6 of the IPL and also renew contracts with players. All the franchises are expected to renew contracts with players before 31 October.

However, the court clarified that the order will cease to be in effect in the event DCHL fails to furnish a bank guarantee of Rs 1 billion.

While delivering the order, Justice SJ Kathawala said: "Though I find that the balance of convenience is more in favour of DCHL, I am of the view that the following protective orders will take care of the interest of both the parties."

The BCCI will be entitled to invoke bank guarantee only in the event of any default on the part of DCHL and only to the extent necessary, the court said.

The court also told the BCCI that it will not act on the termination of franchise agreement pending the arbitration proceedings and making of an award by the arbitrator.

It also told the BCCI that it will not act on the termination for a period of seven days if the award is in their favour.

The court had earlier appointed retired Supreme Court judge CK Thakkar as the sole arbitrator for the dispute between BCCI and DCHL.

The court disposed of the arbitration petition with a clarification that all the observations are prima facie and the arbitrator shall make his award without being influenced by any of the observations made in the order.

While directing DCHL to clear all outstanding dues includes players fee, the court told the BCCI to deposit the amount payable by the board to DCHL and payable in future to DCHL with the Prothonotary and Senior Master of the court which the Prothonotary and Senior Master shall invest in a fixed deposit of a nationalised bank from time to time until further orders of the court.

It needs to be noted that Yes Bank had filed a plea in the Bombay High Court that the receivables due to DCHL from BCCI be deposited in the media company‘s Yes Bank account. DCHL had also told the court that the money from central pool be paid to its Yes Bank account. The BCCI, however, contended that it can‘t do so since other lending banks are making similar claims.

The BCCI had on 15 September terminated the franchise agreement with Deccan Chargers for breach of contract terms. The cricket board had along with DCHL, the owner of Deccan Chargers team, called for bids to sell the Hyderabad-based franchise.

DCHL had rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

MUMBAI: Financially distressed media company Deccan Chronicle Holdings Limited (DCHL), the owner of Indian Premier League (IPL) franchise Deccan Chargers, on Wednesday got a breather from the Bombay High Court in its dispute with the Board of Control for Cricket in India (BCCI).

The high court has asked DCHL to furnish an unconditional bank guarantee of Rs 1 billion within 10 days to BCCI, after which the cricket board will revoke termination of the Deccan Chargers franchise contract.

The direction for providing a bank guarantee is the result of BCCI?s apprehension whether DCHL was capitalised enough to run the IPL team. According to BCCI, every IPL franchise requires at least Rs 1.5 billion to run its affairs every year. DCHL disputed this claim saying the amount required is less than what was being quoted by the cricket board.

DCHL counsel Zal Andhyarajunam argued that the franchise fee payable to BCCI is constant every year save for fluctuations in dollar. DCHL had spent Rs 1.03 billion during season 5 of IPL which includes franchise fee of about Rs 470 million.

The high court also paved the way for the arbitration process between DCHL and BCCI by appointing retired Supreme Court judge C K Thakkar as the arbitrator, after the two parties could not reach an agreement on a mutually acceptable arbitrator.

Additionally, DCHL has taken an oath that it will immediately clear dues amounting to Rs 330 million of both Indian and foreign players in the team.

Andhyarajunam also said that a consortium of banks including Yes Bank have agreed to finance DCHL to run the IPL team for the next season of the tournament.

BCCI counsel Rafiq Dada said DCHL?s debt of Rs 42 billion from as many as 20 banks and financial institutions was a matter of grave concern for the BCCI. The BCCI was apprehensive about DCHL?s financial condition to run the IPL team.

The Yes Bank had filed Chamber Summons with the HC to be made a party to the arbitration process. It wanted BCCI to revoke termination of Deccan Chargers contract and deposit Rs 410 million due to Deccan Chargers from BCCI in their account with Yes Bank.

Dada contended that it was not in a position to release the money in Deccan Chargers? Yes Bank account since there had been similar demands from other banks. DCHL has given its nod for BCCI to deposit money due to it into its Yes Bank account.

The BCCI is worried that if the Deccan Chargers was reinstated with support from multiple banks it would be faced with similar claims from banks with each asking the cricket board to deposit funds due to Deccan Chargers into the franchise?s account with them in case of a dispute.

BCCI also stated that DCHL can?t delegate or sub-contract rights granted under franchise agreement to any other party. If they do so it?s a breach of contract, Dada said.

The court assured that it would protect the BCCI from future claims by banks. It also said that the BCCI can invoke bank guarantee in case Deccan Chargers defaults on any payment in future.

The HC had on 17 September directed BCCI to maintain status quo and not invite bids for a new franchise to replace Deccan Chargers in the IPL.

The BCCI had on 15 September terminated the franchise agreement with Deccan Chargers for breach of contract terms. The cricket board had along with DCHL, the owner of Deccan Chargers team, called for bids to sell the Hyderabad-based franchise.

DCHL had rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

If the DCHL manages to furnish a bank guarantee of Rs 1 billion, it will become the third franchise to stage a comeback after a legal battle. Earlier, Rajasthan Royals and Kings XI Punjab were reinstated as franchises after contesting BCCI?s termination notice in court.

MUMBAI: Yes Bank Limited, one of the 28 lenders to the financially distressed Deccan Chronicle Holdings Limited (DCHL), on Tuesday added a new twist to the ongoing court battle between the now defunct Indian Premier League (IPL) team Deccan Chargers and the Indian cricket board.

The bank filed a Chamber Summons before Bombay High Court for it to be made a party to the petition filed by DHCL challenging the Board of Control for Cricket in India (BCCI) decision to terminate the franchise agreement.

In its filing, Yes Bank has pleaded for: 1) withdrawal of BCCI decision to terminate the Deccan Chargers? franchise; 2) deposit whatever amount is due to or receivable by Deccan Chargers from BCCI in their account with Yes Bank; and 3) the BCCI release Rs 410 million due to Deccan Chargers.

The bank said it has issued demand drafts worth Rs 330 million to BCCI for payment of salaries of Deccan Chargers players. The bank informed the court that if its conditions are not met then there was no point in the bank helping Deccan Chargers to clear its dues.

DCHL Counsel Zal Andhyarajunam sought more time to file a reply following which the court decided to hear the matter tomorrow to hear all the parties and pass an order on the plea made by Yes Bank.

On Monday, the high court asked the BCCI and Deccan Chargers to pursue arbitration by appointing mutually acceptable arbitrators. The two parties have to place the name of their choice of arbitrators before the court.

In case, the two parties fail to arrive at a consensus, the court may appoint an arbitrator to resolve the issue.

The court had on 17 September directed BCCI to maintain status quo and not invite bids for a new franchise to replace Deccan Chargers in the IPL.

The BCCI had on 15 September terminated the franchise agreement with Deccan Chargers for breach of contract terms. The cricket board had along with DCHL, the owner of Deccan Chargers team, had called for bids to sell the Hyderbad-based franchise. DCHL had rejected the lone Rs 9 billion bid of PVP Ventures despite the bidder meeting the eligibility criteria of the BCCI.

The Hyderabad-based media company owes about Rs 42 billion to 28 lenders. It has mortgaged everything from prime properties to printing presses and even its trademarks to lenders as it seeks to repay the debt. The promoters of DCHL have also pledged their shares to lenders.

DCHL was banking heavily on Deccan Chargers to repay a large chunk of its debt.