The Kings XI Punjab team has been ousted from the Indian premier League (IPL), the most coveted cricket tournament ever displayed, played and sponsored for..The Kings XI Punjab team has been ousted from the Indian premier League (IPL), the most coveted cricket tournament ever displayed, played and sponsored for..The Economic Times reports that Kings XI Punjab has decided to approach the Bombay High Court or the Punjab and Haryana High Court (Chandigarh) to appeal against the termination of the franchisee agreement by the Board of Control for Cricket in India (BCCI) that has barred the team from playing in the IPL..Gautam Khaitan, Partner O.P. Khaitan & Co. is representing Kings XI Punjab and said, “We will appeal in the Bombay or Chandigarh High Court and fight for an interim order so that we are allowed to play in IPL season 4. An appeal will be made as early as the middle of next week” reports the Economic Times..Kings XI Punjab is jointly owned by business industrialists such as Mohit Burman, Gaurav Burman, Ness Wadia and Actress Preity Zinta, along with other small players..The BCCI on October 10th terminated the contract of two teams namely Kings XI Punjab and the Rajasthan Royals. Things could get messier for the two teams franchises as well as the IPL. The Enforcement Directorate (ED) which investigates foreign exchange rule violations for alleged violations of the Foreign Exchange Management Act (FEMA) is currently investigating Kings XI for FEMA violations and a show-cause notice has been sent to the Rajasthan Royals for alleged violations under the FEMA..The ED requires the company, and a few related entities to the team, to prove they have not violated the provisions of the FEMA. Under the FEMA, the department can levy a penalty of as much as three times the value of amount of the foreign exchange in question and if there is a property involved in the contravention of FEMA, then that property can be confiscated..Hitesh Jain, Partner ALMT Legal has in an interview with the CNBC discussed the legality of the termination of the franchisee agreement and the consequences of such termination. Hitesh has said, “As regards the termination of franchisee agreement, it appears that the franchisee agreement has been terminated basically on the ground that the bid was submitted by one party and the agreement was signed with another party. There is also a defence that when the bid was submitted it was said that the details were given and in the end the word ‘others’ was added. So, basically on that basis it may be possible for the franchisee to contend that the other names were added. But if the bid terms clearly provide that you have to provide the clear details of the consortium or the shareholders and if the bid documents have been submitted by a different party and the agreement has been signed with another party then that is one issue. So this is a point that there may be some grounds as regards the legality of the termination. But the real effect is what the consequence of such terminations is because under the law, the legal position in India consistently has been upheld by the Supreme Court that as far as franchisee agreements are concerned, they are agreements where you cannot seek a specific performance of this agreement. Once terminated, the remedy for the aggrieved party lies only for damages because these are contracts which are of determinable nature and a party cannot seek a specific performance of the franchisee agreement. So according to me the real worry for the franchise owners will be that assuming they are able to prove that whether that the termination was not legal and it was complete illegal. But the problem will be what will be the consequence and the remedy they are going to eventually get from the court”..Off late the IPL has attracted a lot of controversy as Lalit Modi, the former BCCI Chairman and Commissioner of the IPL and the Chairman of the Champions League from 2008 to 2010 was ousted suddenly and has filed a writ petition in the Bombay High Court on July 8, challenging the BCCI disciplinary proceedings initiated against him..At the IPL, each of the 10 teams have a term contract for a period of 10 years and only 3 IPL seasons have taken place so far. IPL season 4 bidding starts later this year for the 4th season to be played in 2011.
The Kings XI Punjab team has been ousted from the Indian premier League (IPL), the most coveted cricket tournament ever displayed, played and sponsored for..The Kings XI Punjab team has been ousted from the Indian premier League (IPL), the most coveted cricket tournament ever displayed, played and sponsored for..The Economic Times reports that Kings XI Punjab has decided to approach the Bombay High Court or the Punjab and Haryana High Court (Chandigarh) to appeal against the termination of the franchisee agreement by the Board of Control for Cricket in India (BCCI) that has barred the team from playing in the IPL..Gautam Khaitan, Partner O.P. Khaitan & Co. is representing Kings XI Punjab and said, “We will appeal in the Bombay or Chandigarh High Court and fight for an interim order so that we are allowed to play in IPL season 4. An appeal will be made as early as the middle of next week” reports the Economic Times..Kings XI Punjab is jointly owned by business industrialists such as Mohit Burman, Gaurav Burman, Ness Wadia and Actress Preity Zinta, along with other small players..The BCCI on October 10th terminated the contract of two teams namely Kings XI Punjab and the Rajasthan Royals. Things could get messier for the two teams franchises as well as the IPL. The Enforcement Directorate (ED) which investigates foreign exchange rule violations for alleged violations of the Foreign Exchange Management Act (FEMA) is currently investigating Kings XI for FEMA violations and a show-cause notice has been sent to the Rajasthan Royals for alleged violations under the FEMA..The ED requires the company, and a few related entities to the team, to prove they have not violated the provisions of the FEMA. Under the FEMA, the department can levy a penalty of as much as three times the value of amount of the foreign exchange in question and if there is a property involved in the contravention of FEMA, then that property can be confiscated..Hitesh Jain, Partner ALMT Legal has in an interview with the CNBC discussed the legality of the termination of the franchisee agreement and the consequences of such termination. Hitesh has said, “As regards the termination of franchisee agreement, it appears that the franchisee agreement has been terminated basically on the ground that the bid was submitted by one party and the agreement was signed with another party. There is also a defence that when the bid was submitted it was said that the details were given and in the end the word ‘others’ was added. So, basically on that basis it may be possible for the franchisee to contend that the other names were added. But if the bid terms clearly provide that you have to provide the clear details of the consortium or the shareholders and if the bid documents have been submitted by a different party and the agreement has been signed with another party then that is one issue. So this is a point that there may be some grounds as regards the legality of the termination. But the real effect is what the consequence of such terminations is because under the law, the legal position in India consistently has been upheld by the Supreme Court that as far as franchisee agreements are concerned, they are agreements where you cannot seek a specific performance of this agreement. Once terminated, the remedy for the aggrieved party lies only for damages because these are contracts which are of determinable nature and a party cannot seek a specific performance of the franchisee agreement. So according to me the real worry for the franchise owners will be that assuming they are able to prove that whether that the termination was not legal and it was complete illegal. But the problem will be what will be the consequence and the remedy they are going to eventually get from the court”..Off late the IPL has attracted a lot of controversy as Lalit Modi, the former BCCI Chairman and Commissioner of the IPL and the Chairman of the Champions League from 2008 to 2010 was ousted suddenly and has filed a writ petition in the Bombay High Court on July 8, challenging the BCCI disciplinary proceedings initiated against him..At the IPL, each of the 10 teams have a term contract for a period of 10 years and only 3 IPL seasons have taken place so far. IPL season 4 bidding starts later this year for the 4th season to be played in 2011.
