Cancellation of tender process improper - High Court

Jagmohan Dalmiya: at the wrong end of the High Court verdict © Getty Images

The controversy over telecast rights in India took another turn with the Chennai High Court ruling that the cancellation of the tender process by the Indian board was improper, and that Zee Telefilms could sue the BCCI for damages.

The court also severely criticised Jagmohan Dalmiya, the former president of the BCCI, for his conduct: "The cancellation of the tender process by the board is improper and vitiated by arbitrariness and unfair action of the Board and Dalmiya in particular. Dalmiya had presented a story or picture by clear misrepresentation of what had happened before the court at Bombay and thereby successfully prejudiced the committee against the petitioner and wrested from them a blank cheque to do whatever he liked."

Zee had appealed to the Chennai High Court to protest against the board's decision to cancel the bidding process after having granted the telecast rights to Zee for US$308 million dollars. Reacting to the judgement, PS Raman, a lawyer for Zee, said that their stand had been vindicated: "Our stand that the board's action in going in for a re-tender was unfair, unreasonable and vitiated by malice has been found true and sustained by the Madras High Court and to that extent we are happy with the judgement."

Zee also indicated that they were seriously considering taking legal action against the board. "We can now sue the board for damages. We are discussing the matter with our management and legal advisers and will take a decision soon," Ashish Kaul, vice-president, corporate brand development group, told Business Standard. "Let us first get a copy of the judgement."

The court also ruled that the BCCI could ask for fresh tenders for the telecast of international matches in the country, and said that both Zee and ESPN-Star could put in new bids.