Mumbai: TV reports said that IPL team Deccan Chargers have been asked to pay a Rs 100-crore bank guarantee or face termination.
The board of Control for Cricket in India (BCCI) and the Deccan Chargers have agreed before the Bombay HC to go to an arbitrator to resolve their dispute.
The name of the arbitrator will be decided on Tuesday when petition is taken up for further hearing.
The Bombay High Court on Monday had suggested to the Cricket Board and Deccan Chronicles Holdings Ltd to settle their dispute over the termination of the IPL franchise by referring the matter to a mutually acceptable arbitrator.
The Chargers say their contract was ‘abruptly terminated’: AFP
However, counsel for both the sides had said they would seek instructions from their respective clients over the names of arbitrator or arbitrators which would then be placed before the Court for approval.
The Court had earlier granted status quo regarding the termination of the Deccan Chargers’ IPL franchise by BCCI.
The Cricket Board had filed an affidavit listing a series of breaches committed by the Deccan Chargers. It argued that the players had not been paid and said that around 20 banks were creditors of the franchise, with dues to the tune of Rs4000 crore pending against the group.
Counsel for Deccan Chronicles Holdings Ltd, Zal Andhyarajunam, admitted that the Company had to pay substantial debts but assured that it would meet its obligations. Even the banks have assured. “All that we need is an elbow or breathing space to face our problems”, he said.
“We are under financial constraints but are making bonafide attempts to resolve them. We (Deccan Chargers) have been running the franchise since last 3-4 years and we will continue to do so.
BCCI, he said, had not given them a chance to make a representation and terminated their franchise abruptly”. This, he argued, was very unfair, despite assurances by banks, mainly ICICI, that the company would meet its obligations.
As of now, there is no debt which is payable or due immediately. The instalments are due in October, November and December, Deccan Chronicles Counsel told the Court.
The BCCI, on the other hand, argued that Deccan Chronicles had to pay the players, the Cricket Board and had to run the franchise. In order to run a franchise, one needs at least Rs150 crores, BCCI Counsel Rafiq Dada submitted.
The BCCI further said that the contract of players would come up for renewal on 31 October and asked how the team was in a position to renew their contracts or even hire new players unless the existing ones are paid.
“If for every bit of money, they (Deccan Chargers) are going to ask the banks then how can they run the franchise?” he asked.
With input from Agencies
