CHANDIGARH: The two year tussle between the Kings XI Punjab and the BCCI has finally been resolved with the two parties learnt to have sorted out all the pending issues.The Kings XI Punjab and BCCI were embroiled in a legal battle after the BCCI cancelled the franchise of the Kings XI for alleged violation of the agreement in October 2010.
The cancellation had however been stayed by the Mumbai High Court on October 10, 2010.The compromise was reportedly reached out recently after the BCCI and Kings XI officials met in Mumbai during the sidelines of the BCCI working committee and marketing committee meetings.
According to the ESPN cricinfo, it was decided that the franchise will be fined Rs 1 crore for their breaches so far, and there will be no further legal proceedings between the parties.The KingsXI Punjab and BCCI legal battle started after the BCCI terminated Punjab franchise in October 2010 holding it guilty for violating the franchise agreement for multiple counts.
The main reason, however, cited was that the ownership of the franchise had changed twice in the first three years of the league and it had not been reported to the BCCI.The cancellation of the franchise had been stayed by the High Court. The franchise had argued that it was a deliberate and calculated move to ensure a new and more lucrative re-bidding process.
The two parties than decided to go for arbitration.The agreement has finally secured the future participation of the Kings XI in the IPL. According to the cricinfo.com, in October 2010, the BCCI had terminated the franchise agreement with KPH Dream Cricket Pvt Ltd, the promoters of KXIP, on two counts.Firstly, for having "stepped into the shoes of the original bidder on the date of award of the Franchisee without being a "group company or entity controlled by the bidder".
This transgression would shake very foundation of the tender process otherwise meant to eliminate any possibility of successful bids being converted into marketing opportunities even prior to the award of the Franchisee rights."Secondly, "Clear violation of the franchise agreement, more particularly clause 10.1, 10.2(a) and 10.3. These violations have taken place more than once."