IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 3486 OF 2011 [Arising out of SLP(C) No.6483/2011]

Board of Control for Cricket in India … Appellant  

Vs.

World Sports Group (I) P.Ltd. … Respondent  

O R D E R

Leave granted.  

2. An  agreement  dated  25.3.2009  was  executed  between  

the  appellant  -  Board  of  Control  for  Cricket  in  India  

('BCCI' for short) and the respondent in regard to Media  

Rights for rest of the World (that is World wide Rights  

except India) for telecasting the IPL (the Indian Premier  

League)  Cricket  Matches  for  the  period  15.3.2009  to  

31.12.2012  and  1.1.2013  to  31.1.2017.  By  letter  dated  

28.6.2010,  the  BCCI  rescinded  the  said  agreement  dated  

25.3.2009  attributing  fraud  and  misrepresentation  to  the  

respondent.

3. Aggrieved by the termination, the respondent filed a  

petition  under  Section  9  of  the  Arbitration  and  

Conciliation  Act,  1996  ('AC  Act'  for  short)  before  the  

Bombay High Court seeking a direction to restrain BCCI from  

creating any third party rights in regard to any of the  

rights conferred upon the  respondent under the agreement  

dated  25.3.2009.  The  said  application  was  dismissed  by  

learned a single Judge on 20.12.2010. Feeling aggrieved,  

the respondent filed an appeal before the Division Bench of  

the High Court. The High Court allowed the said appeal by  

the  impugned  order  dated  23.2.2011  with  the  following  

directions:

“26. Considering the aforesaid aspect in our view, till  

the  Arbitrator  is  appointed,  the  respondent  is  

restrained  from  giving  the  contract  in  question  to  

anyone.   During  the  pendency  of  this  appeal,  a  

statement was made by the respondent that they will not  

create any third party interest.  The said protection,  

in our view, is required to be continued for a limited  

period.  However, the interim protection as aforesaid  

shall  continue,  provided  the  petitioner  takes  

appropriate steps within a period of one month for the  

purpose  of  appointing  the  Arbitrator.  If  such  

proceedings  are  initiated  within  one  month,  such  

interim protection shall continue to operate till one  

week afte the decision is taken by the concerned court  

for appointment of Arbitrator.  In case the application  

under Section 11 of the Act is rejected, this interim  

protection  shall  automatically  cease  to  operate.  

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However, in case, Arbitrator is appointed, the parties  

may apply to the Arbitrator, within two weeks of such  

appointment  for  interim  relief  and  till  then  the  

interim relief will continue to operate.  If any such  

application  is  preferred,  the  Arbitrator  is  free  to  

decide the said application, after hearing both sides  

on its own merits.  It is for the Arbitrator to decide  

whether  interim  protection  which  is  continued  is  

required  to  be  continued  or  the  prayer  for  interim  

protection is required to be rejected or whether any  

additional  interim  protection  is  required  to  be  

granted.  All these aspects are left to the Arbitrator  

who shall decide the same in accordance with law, after  

hearing  both  the  sides  and  the  observations  made  in  

this order shall have no effect as the said application  

is required to be decided  de novo  on its own merits.  

The above observations are made only in connection with  

Section 9 Application and the same will have no bearing  

in case any application under Section 11 of the Act is  

preferred by the petitioner.

The  said  order  is  challenged  by  BCCI  in  this  appeal  by  

special  leave.  On  3.3.2011,  while  issuing  notice,  this  

court granted interim stay of the judgment of the division  

bench of the High Court, subject to the condition that BCCI  

will continue to be bound by its undertaking (given to the  

High Court) that it will honour all contracts (sub-licence  

agreements) entered into by the respondent.  

4. On  8.3.2011,  BCCI  invited  tenders  for  grant  of  

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global  internet  and  mobile  rights  (alongwith  certain  

television  rights)  with  reference  to  broadcasting  IPL  

matches for the four seasons from the year 2011 to 2014.  

On  an  application  by  the  Respondent  seeking  an  interim  

direction to the BCCI not to proceed or process or act upon  

its tender notice dated 8.3.2011 in so far as it related to  

the  rights  that  had  been  exclusively  granted  to  the  

respondent,  this  court,  after  hearing  the  parties,  on  

18.3.2011, issued the following interim directions:  

(1)  In  regard  to  the  contracts  (sub-Licence  

Agreements)  already  entered  by  the  respondent  with  

third parties, BCCI will be entitled to secure copies  

of the respective agreements and receive all payments  

due  under  the  sub-licence  agreement  and  remit  the  

same to an Escrow Account with  a nationalised Bank.

(2)  BCCI  will  be  entitled  to  proceed  with  the  

awarding of Media Rights referred to in the tender  

notice dated 8.3.2011, subject to the condition that  

all  amounts/deposits/consideration/licence  fee  

received shall also be remitted to the said Escrow  

Account.

(3)  The  bids  received  in  response  to  the  tender  

notice dated 8.3.2011 shall be opened, and decision  

in  regard  to  award  of  contract   taken,  in  the  

presence of Court appointed Observer - Mr. Justice  

Mukul  Mudgal  (Retired  Chief  Justice  of  Punjab  &  

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Haryana  High  Court).  BCCI  shall  make  appropriate  

arrangement for his travel and stay in that behalf.

(4)  Out  of  the  amounts  remitted  to  the  Escrow  

Account, BCCI will be entitled to draw every year,  

the licence fee that it would have received from the  

respondent  under  the  Agreement  dated  25.3.2009,  if  

the  said  agreement  had  not  been  terminated.  The  

remaining amount shall be kept in fixed deposit for a  

term of one year.  The Said amount shall be dealt  

with as per the final order of this Court. BCCI shall  

file a confirmation from the Bank that the amount  

will be dealt with as per the final order of this  

Court.

5. In pursuance of the said order, we are informed that  

the  bids  were  considered  and  in  the  presence  of  the  

Observer appointed by this Court, the contract was awarded  

to M/s. Times Internet Ltd.

6.  When  the  matter  came  up  today,  both  parties  

submitted that as the said directions broadly covered the  

interests of parties, this matter could be disposed of in  

terms of the said interim arrangements made on 18.3.2011  

with appropriate modifications.

7. In view of the above, this appeal is disposed of  

with the following directions:  

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(a) BCCI shall be entitled to award any of the unawarded  

sub-licence media rights (to which respondent was entitled  

under  the  agreement  dated  25.3.2009),  by  following  the  

standard tender procedures. BCCI will be entitled to take  

all decisions, and do all acts, that could have been taken  

or  done  by  the  respondent  under  the  agreement  dated  

25.3.2009, if it had been operational.  

(b) All amounts/deposits/licence fees received by BCCI  

as  consideration  in  respect  of  sub-licence  agreements  

entered  by  the  respondent,  or  by  the  BCCI  after  the  

termination, shall be remitted to an Escrow Account with a  

Nationalized Bank.

(c) Out  of  the  amounts  so  remitted  to  the  Escrow  

Account,  BCCI  shall  be  entitled  to  draw  every  year,  an  

amount equivalent to the licence fee it would have received  

from the respondent under the agreement dated 25.3.2009 (if  

the  said  agreement  had  not  been  terminated),  without  

prejudice to its rights and contentions.

(d) The  net  annual  income  (that  is  the  difference  

between the total of amounts remitted to the Escrow Account  

every year less the amount equivalent to the licence fee  

that  is  drawn  by  BCCI  in  terms  of  agreement  dated  

25.3.2009) shall be kept in a fixed deposit for a term of  

one year. Such fixed deposits shall be renewed yearly till  

the  final  adjudication  of  the  disputes  between  the  

respondent  and  the  appellant  by  a  competent  court  or  

arbitral  tribunal  (if  the  remedy  of  arbitration  is  

available or agreed) as the case may be.   

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(e) BCCI shall file yearly accounts (after furnishing a  

copy thereof to the respondent) in regard to the amounts  

received,  the  amount  remitted  to  the  Escrow  Account,  

amounts drawn by BCCI (equivalent to the licence fee under  

the agreement dated 25.3.2009) and the net amount invested  

in fixed deposits.

(f) In  regard  to  the  amounts  to  be  received  and  

accounted  for  by  BCCI  as  aforesaid,  the  BCCI  shall  be  

deemed  to  be  a  Receiver  appointed  by  this  Court.  Such  

deemed  Receivership  will  end  automatically,  on  final  

decision by the Court/Tribunal before which the disputes  

are raised, or on 31.1.2017, whichever is earlier.

8. Nothing contained in the impugned order of the High  

Court or this order shall be construed as expression of any  

opinion  on  the  merits  of  the  dispute.  The  Court  or  the  

arbitral Tribunal, adjudicating upon the disputes between  

the parties, will do so purely on merits on the basis of  

the  material  placed  before  it,  uninfluenced  by  any  

observation made in any of the orders till now.   

9. The Observer of this Court shall be paid a fees of  

Rs.1,00,000/-  (Rupees  one  lac  only)  by  each  party  apart  

from meeting his expenses.

10. Parties to bear their respective costs.  

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....................J.          ( R.V. RAVEENDRAN )

New Delhi;        ....................J. April 21, 2011.                 ( A.K. PATNAIK )

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