Preity Zinta Files Defamation Case Against Punjab Kings Co-Owner Mohit Burman, Crisis-Hit IPL Franchise Faces New Trouble
The Indian Premier League experienced quite a drama when Preity Zinta filed an injunction in a court of law to restraint co-owner Mohit Burman from selling his shares in the Punjab Kings franchise. In this already crisis-hit IPL team, this legal tussle has created another problem.
Legal Notice and Petition in Court
Preity Zinta, holding a 23 per cent stake in the Punjab Kings, has filed a petition against Mohit Burman in the Chandigarh High Court. The disputed matter has been about Burman’s intention to sell some part of his shareholding in the team. Promoters were locked in a dispute as Burman is the largest shareholder with a 48 per cent stake and wants to sell 11.5 per cent of his shares.
Zinta’s legal appeal has reportedly been based according to the provisions laid by Section 9 of the Arbitration and Conciliation Act-1996, seeking interim measures and directions in light of the current disputes between Zinta and Burman. The major concern on the part of Zinta is that of ‘lack of communication’ and ‘approval’ from the existing promoters before any stake sale can be executed.
A report in the Tribune pointed out that the petition by Zinta has been revealing in the sense that Burman has a high shareholding, coupled with his position on the board. She feels that the transfer of shares should be reported in advance to the other co-owners and only by their will should the transaction go through. The court has decided to list the case for hearing on August 20, and if things go well, a clear structure concerning the ownership could finally be obtained for the beleaguered franchise.
Current Ownership Structure and Dispute
Key stakeholders in Punjab Kings’ ownership include
Mohit Burman: 48%
Preity Zinta: 23%
Ness Wadia: 23%
Karan Paul: The remaining part
As the controversy has emerged, Burman had, in a statement, expressed his willingness to divest a portion of his shareholding in the team, but Zinta was against the way he was doing so outside of the protocol that the stakeholders of the team had subscribed to. The state of affairs not only indicates some internal differences but also seems to be shaking the team’s administration and planning.
Punjab Kings is one of those franchises within the IPL fold that has lacked consistency and success. The team has never won an IPL Trophy, a fact lurking back in the minds of its owners. Couple that with issues on the field, and this could be a side dampening its tepid prospects further with off-field disputes.
At the same time, the team is currently without a coach after Trevor Bayliss departed. The coaching position is still vacant, and recruitment might take some time, particularly if there is an ongoing battle for ownership, which could result in a delay in getting an important coaching position filled.
Ownership Wars and the Coming Months
The case related to Zinta-Burman is a landmine case linked to the ongoing IPL ownership wrangles. The settlement of the same gives immense importance, not so much toward the stability of Punjab Kings but toward the ongoing management of franchises in the global world of sports.
If the court rules in Zinta’s favor, it could affect the creation of share transfers in IPL franchises with tighter controls and stricter communication procedures in the future. If Burman is allowed to sell his shares, it could change the power structures within the franchise’s co-owners.
Conclusion
The one man in the whole of this never-ending saga of Punjab Kings who seems to have taken the matter seriously is Preity Zinta. Now also encumbered by the sort of internal issues as these and failing to make their way back into the cricketing reckoning, the outcome of this legal dispute is bound to have some far-reaching implications for the franchise. When the case comes to court on August 20, the proceedings are going to be fully watched the outcome could be all-important for one of the IPL’s most glittering but dully performing outfits.
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