Madras high court dismisses Volleyball Federation’s stay application against arbitration award to Baseline

The federation had challenged the earlier arbitration judgement awarded in favour of sports marketing firm Baseline Ventures for the ‘wrongful termination’ of the 10-year contract for Pro Volleyball League.

However, a single bench court of justice N Sathish Kumar had directed VFI to first deposit Rs 2 crore in the court by October 28, subject to which an order of stay would have been granted.

In November last year, Justice (Retd) K Kannan, the Madras high court-appointed arbitrator, had awarded Rs 4 crore (plus interest as damages and legal fees) to Baseline Ventures in its dispute against VFI for the termination of the contract.

Baseline had organised the first season of the league in February 2019.

On November 18, 2019, VFI terminated the 10-year agreement alleging financial irregularities and manipulation by Baseline Ventures.

However, after almost 10 months of arbitration, the arbitrator dismissed all allegations made by VFI against Baseline pertaining to the breach of contract and observed that there was no ground to terminate the contract.

The arbitrator also noted that the federation did not follow due process to terminate the contract and awarded in favour of Baseline.

In his judgement, the arbitrator stated that if VFI only had the interest of the players in mind and for fostering the sport as a popular entertainment to the public, it ought to have known that there was too big a price to close all options and terminate the agreement.

He also dismissed the counter claim of Rs 14.93 crore made by the VFI against Baseline Ventures.

VFI later challenged the arbitration award in the Madras high court and sought an interim stay.

Now along with the original award and the interest, the VFI now owes Baseline Ventures over Rs 6 crore.

The two bank accounts of the VFI in the

, Chennai, have already been attached to the Madras High Court for the recovery of the arbitration award to Baseline.

When asked for comment, a Baseline Ventures spokesperson refused to comment, however, sources said that the agency will focus on recovery of the damages due to it.