IPL 2012: SC Puts On Hold Order Directing Insurer To Pay Rs 82.80 Lakh On Account Of Sreesanth's Injury
United India Insurance Co. Ltd had filed a plea against the National Consumer Disputes Redressal Commission's order
By Sumit Saxena
Published : October 13, 2025 at 8:36 PM IST
New Delhi: The Supreme Court on Monday put on hold an order passed by the National Consumer Disputes Redressal Commission (NCDRC), directing an insurance firm to pay Rs 82.80 lakh to a company, which had contracted players of the Indian Premier League (IPL) franchise Rajasthan Royals, on account of S Sreesanth's knee injury in the 2012 edition of the tournament.
The matter came up before a bench comprising Justices Vikram Nath and Sandeep Mehta. The bench passed the order while hearing a plea filed by United India Insurance Co. Ltd against the National Consumer Disputes Redressal Commission's (NCDRC) April order. "He (Sreesanth) did not play for a single day (in IPL 2012)," the bench observed, adding, "Till further orders, the effect and operation of the impugned order shall remain stayed".
"Issue notice… The respondent is already represented through Rony Oomen John, Advocate-on-Record, on caveat. Hence, issuance of formal notice is dispensed with. The appeal is admitted. Until further orders, the effect and operation of the impugned order shall remain stayed", said the bench, in its order.
The NCDRC had passed the order on a complaint filed by Royal Multisport Pvt Ltd under the Consumer Protection Act, 1986, alleging wrongful repudiation of the insurance claim by the firm. The commission noted that Royal Multisport Pvt Ltd had contracted players of 'Rajasthan Royals' in the IPL tournament in March 2012 and had obtained a 'special contingency insurance for player loss of fees cover' for a sum of Rs 8.70 crore from the insurance firm.
The NCDRC noted that under the policy, the insurance firm was liable to pay Royal Multisport Pvt Ltd for the loss of fees, remuneration and any other monies paid/payable to the contracted players due to their non-appearance in IPL 2012, if it was due to circumstances under the policy, including injury sustained during the policy period.
The commission further noted that the policy was enforced from March 28, 2012, till May 28, 2012. The NCDRC noted that on March 28, 2012, Sreesanth suffered a knee injury in a practice match at Jaipur, and later, it was concluded that he was unfit to play in IPL 2012 due to the injury. Royal Multisport Pvt Ltd requested the insurance firm on April 23, 2012, to process the claim for loss of player fees under the policy and filed a claim for Rs 82.80 lakh in September 2012.
The NCDRC noted the claim was repudiated by the insurance firm on the ground that there was a pre-existing toe injury to Sreesanth that was not disclosed by Royal Multisport Pvt Ltd to it (the insurance firm). The commission had directed the insurance firm to pay Rs 82.80 lakh to Royal Multisport Pvt Ltd.
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