Supreme Court asks CoA to release funds to HPCA

The Supreme Court has asked the BCCI's Committee of Administrators (CoA) to release funds to the Himachal Pradesh Cricket Association (HPCA) one day before the start of the fourth Test between India and Australia in Dharamsala. Although the court's record of proceedings did not specify the amount, reports suggested disbursements to the tune of INR 2.5 crore were instructed. In addition, the court asked the CoA to release funds to the state associations of Maharashtra, Karnataka and Jharkhand, which hosted the first three Tests of the ongoing series in accordance with the terms of the contract.

"It is directed that the BCCI shall honour the contractual commitments postulated in the contract so that there is no impediments in holding the Test match," the Supreme Court bench, headed by Justice Dipak Mishra and comprising Justices AM Khanvilkar and DY Chandrachud, was quoted as saying by PTI.

In its second status report last week, the CoA had pointed to the HPCA's "intransigence" and sought the Supreme Court's immediate interference to ensure the smooth conduct of the final Test between India and Australia, as well as the IPL. According to the CoA, the HPCA had asked the BCCI to release funds to conduct the fourth Test despite not having complied with the court's twin orders last October.

Through two separate orders, the court had made it clear that the BCCI "cease and desist" from disbursing funds to the state associations until they submit a written undertaking agreeing to adopt the Lodha Committee's recommendations. In addition, the CoA said the HPCA had sufficient financial reserves for the Test match to go on unhindered.

According to the CoA, the HPCA had about INR 6.27 crore as savings on March 31, 2016. Also, an amount of approximately INR 59.44 crore was transferred by the BCCI to the HPCA account between April and October last year, not including the INR 16 crore that each state association received from the BCCI towards the cancellation of the Champions League T20.

On Friday, however, additional solicitor general Tushar Mehta, appearing for the HPCA, contended that the BCCI owed over INR 8 crore to the HPCA, and was "contractually bound" to release the money. Mehta also pointed out that the HPCA was a registered company under Section 25 of the Companies Act, and that any changes in compliance with the panel's recommendations could only be undertaken by the general body.

With many state associations seeking release of funds for the IPL as well, the bench said the CoA, state associations and franchise owners would have to abide by the terms of their tripartite agreement for the smooth conduct of matches. The CoA had earlier made note of the threat posed by some of the ten state associations set to host the IPL, which starts in under two weeks' time.

The CoA had told the court that the Saurashtra Cricket Association (SCA) had written to the BCCI "more than once" asking for funds to be released to address various payments including the "conduct" of the IPL. Rajkot, where the SCA is headquartered, will play host to Gujarat Lions for five matches.

"We have been apprised that the [IPL] matches are going to commence from 5th April, 2017, and there are ten venues in India," the bench said. "There have to be tripartite contracts some have been entered into, while some shall be entered into in due course. After the contracts are executed, following the principle of parity, BCCI shall also honour the contractual terms. Needless to say, when we say that BCCI shall honour its commitment, there has to be sincere commitment of honouring the terms and conditions of the contract by all the parties to the contract," it said.

According to PTI, the bench also said it would take up other issues raised by Railways, Services and Association of Universities, NCC and other state cricket associations, including HPCA, Cricket Association of Bengal and Maharashtra Cricket Association against the July 18, 2016, order on July 14.