RR and Kings XI furnish bank guarantee to BCCI
The High court had earlier stayed the termination of contract of Kings XI Punjab and Rajasthan Royals with BCCI.
However, in case of Kings XI the dispute would be referred to a new arbitrator as former Supreme Court judge B N Srikrishna had recused himself from the case.
While staying the termination of contracts of these two IPL franchises, the court had asked them to furnish bank guarantees to BCCI for making up losses that the Board and its players might suffer in case the arbitrator`s award goes against them.
Kings XI was asked to furnish bank guarantee of USD 18 million for the players which it might pick up in the IPL January 8-9 player auction in Bangalore, and of USD 3.5 million for the BCCI.
Rajasthan Royals were asked to submit USD 2.83 million as guarantee to the BCCI for the contract and USD 18 million as bank guarantee for the players.
Both informed the High Court today that this had been complied with.
BCCI had terminated the contracts of the two IPL franchises, alleging that they had breached the agreement by changing its shareholding pattern without its consent.
The aggrieved parties moved the High Court which allowed them to solve the dispute through arbitration.
In case of Kings XI, the High Court recorded statement of their lawyer that the shareholding pattern of owners – Preity Zinta and industrialist Ness Wadia — would not change and shares would not be sold without the permission of the court or arbitrator.
In the matter of Rajasthan Royals, the arbitrator had stayed the termination of its contract by BCCI and later the High Court had upheld the decision.