Telangana HC orders HCA to pay Rs. 25.92 cr to Visakha industries

Hyderabad: The Telangana High Court dismissed the Hyderabad Cricket Association’s (HCA) appeal against an arbitration award that mandated a payment of Rs. 25.92 crores to Visakha Industries Limited.

The dispute dates back to an agreement made on October 16, 2004, between HCA and Visakha Industries, under which Visakha provided Rs. 4.32 crores in funding for the construction of the Uppal International Stadium in exchange for promotional rights.

However, the HCA failed to honour the agreement and unilaterally cancelled it in 2011. Visakha Industries subsequently sought arbitration, which in 2016 resulted in a tribunal awarding Rs. 25.92 crores in their favour.

HCA’s challenge in the commercial court was dismissed, prompting an appeal to the High Court.

The court, while upholding the arbitration award, criticised the HCA’s handling of the matter and made it clear that the association must pay the awarded sum to Visakha Industries.