Another setback for HCA
This marks the final resolution of a long-standing contractual dispute arising from an agreement executed in 2004 concerning in-stadia advertisement rights and naming privileges at the Rajiv Gandhi International Cricket Stadium, Uppal.
Hyderabad: The High Court for the State of Telangana (Hyderabad) has dismissed the appeal (COMCA No. 32 of 2024) filed by the Hyderabad Cricket Association (HCA), thereby upholding the arbitral award dated 15.03.2016 in favour of M/s. Visaka Industries Limited.
This marks the final resolution of a long-standing contractual dispute arising from an agreement executed in 2004 concerning in-stadia advertisement rights and naming privileges at the Rajiv Gandhi International Cricket Stadium, Uppal.
In a detailed and reasoned judgment, the Division Bench comprising Hon’ble Justice Moushumi Bhattacharya and Hon’ble Justice BR Madhusudhan Rao affirmed the arbitral award of ₹25.92 crore in damages plus interest and costs to Visaka Industries. The award had been previously confirmed by the Commercial Court in July 2024, and now by the Appellate Bench.
The Court confirmed that the arbitral proceedings were conducted fairly and without bias, and the award is well-reasoned and consistent with the provisions of the Arbitration and Conciliation Act, 1996.
The allegations raised by HCA regarding economic duress and conflict of interest by its past office-bearers were rejected outright as baseless, belated, and unsupported by any credible evidence.
The Court upheld the Tribunal’s award of six times the consideration paid by Visaka as liquidated damages, based on clear contractual provisions and relevant legal standards under Sections 73 and 74 of the Indian Contract Act, 1872.
The challenge to MR Vikram’s appointment as arbitrator, based on alleged conflict due to his association with Visaka’s statutory auditors, was dismissed. The Court found that full disclosure was made in 2011 and acknowledged by HCA without objection for over five years.
