The Madras High Court has dismissed a challenge by the Volleyball Federation of India (VFI) to an arbitral award directing it to pay ₹4 crore to Baseline Ventures, the former promoter of the Pro Volleyball League, towards loss of profits. The court held that the termination of the 2018 agreement by the federation was unjustified and found no ground to interfere with the award.
Justice N. Anand Venkatesh, while rejecting the federation’s plea, ruled that the arbitral award dated January 21, 2020 did not suffer from “any perversity or patent illegality warranting the interference of this court.” The court also imposed costs of ₹2.5 lakh on VFI, payable to Baseline Ventures.
Baseline Ventures had entered into a 2018 agreement with VFI in connection with the Pro Volleyball League. The dispute arose after the federation terminated the agreement, following which Baseline Ventures initiated arbitration proceedings seeking compensation for loss of profits.
The arbitral tribunal allowed the claim and directed VFI to pay ₹4 crore to Baseline Ventures.
VFI approached the High Court seeking to set aside the arbitral award. The federation contended that the award was liable to be interfered with and sought judicial review of the tribunal’s findings.
The High Court refused to reappreciate the evidence or interfere with the findings of the arbitral tribunal. It held that the scope of interference under the Arbitration and Conciliation Act is limited and can be invoked only if the award suffers from patent illegality or perversity.
Justice Venkatesh concluded that the tribunal’s determination did not meet the threshold required for judicial interference. The court further held that the termination of the 2018 agreement by VFI was unjustified, thereby affirming the tribunal’s conclusion that Baseline Ventures was entitled to compensation for loss of profits.
Dismissing the federation’s plea, the court upheld the arbitral award directing payment of ₹4 crore to Baseline Ventures and imposed costs of ₹2.5 lakh on VFI.
