The embattled Hyderabad-based IPL franchise has been granted a request by the Bombay High Court to switch to private funding.
Mumbai: The Bombay High Court today granted three more days to Deccan Chronicles Holdings Ltd (DCHL) to give an irrevocable and unconditional bank guarantee of Rs 100 crore to the Indian cricket board regarding IPL franchise Deccan Chargers.
DCHL, owners of IPL team Deccan Chargers, were on October 1 directed by the high court to submit by October 9 the bank guarantee which would be in force for a period of one year.
The direction was passed by Justice S J Kathawala while hearing a petition filed by DCHL challenging BCCI's decision to terminate the contract of cash-strapped Hyderabad franchise.
BCCI had in September taken the decision to terminate the contract after an emergency IPL Governing Council meeting in Chennai. DCHL on Monday filed an application seeking extension of time to submit the bank guarantee which was accepted by the court.
The company will now have to give the bank guarantee by Friday.
The court had earlier ordered that DCHL shall bear all expenses for IPL series-6 including making payments to BCCI towards franchise, players and support team costs. Besides, DCHL shall also bear the costs of conducting matches and other expenses, the judge had ruled.
In the event of any default on part of DCHL, BCCI shall be entitled to invoke the bank guarantee to the extent necessary, Justice Kathawala said.
The court had on September 26 appointed retired Supreme Court judge C K Thakkar as arbitrator to resolve within three months the dispute between BCCI and DCHL over the termination of Deccan Chargers franchise.
However, pending arbitration proceedings and making up of an award by the arbitrator, the judge asked the BCCI not to act on the termination of the franchise agreement for a period of seven days, if the award is in their favour.
The judge clarified that this order would immediately cease to be in effect if DCHL fails to furnish the bank guarantee.