Yes Bank seeks to be intervenor in Deccan case

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.