New Delhi: In a setback for the owners of Kochi Tuskers Kerala, the Bombay High Court has squashed their plea against the BCCI encashing their bank guarantee.
The BCCI on Monday had terminated the contract of the IPL franchise for non-payment of bank guarantee, thus abruptly ending the controversial Kerala team's association with the cash-rich league after just one year.
Kochi Tuskers Kerala chairman Mukesh Patel confirmed on Wednesday morning that the team had moved the court on the matter, but their plea has now been rejected after a hearing in the afternoon.
The decision to terminate the Kochi franchise was taken at the BCCI's Annual General Meeting in Mumbai on Monday.
"Because of the irremediable breach committed by the Kochi franchise, the BCCI has decided to encash the bank guarantee in their possession and also terminate the franchise," new BCCI President N Srinivasan had told reporters after the AGM.
Asked if the BCCI would reconsider its decision and give the franchise a chance to return, Srinivasan had bluntly rejected such a suggestion.
However, the BCCI's claim that the franchise defaulted on a Rs 156 crore annual payment, which it was supposed to make as bank guarantee, was refuted by Patel.
"The BCCI notice was wrong, (it was) prima facie. We will take legal action against them after our legal team reviews the case in a day or two. Maybe we have to move court," Patel had said.
"We have never defaulted. The BCCI will be paying us Rs 12-15 crore next month as a part of our central revenue," he had added.
(With agency inputs)