Supreme Court Stays NCDRC Order Awarding ₹82 Lakh to Rajasthan Royals Over Sreesanth’s Injury

The Supreme Court has stayed a National Consumer Disputes Redressal Commission (NCDRC) order that directed United India Insurance Company to pay over ₹82 lakh to the owner of the Rajasthan Royals team for cricketer S. Sreesanth’s injury during the 2012 IPL season.

A Bench of Justices Vikram Nath and Sandeep Mehta passed the stay order while hearing a plea filed by the insurance company challenging the NCDRC’s decision.

During the hearing, Senior Advocate Neeraj Kishan Kaul, appearing for Rajasthan Royals, argued that although the insurance claim had been rejected citing a pre-existing toe injury, that old injury did not prevent Sreesanth from playing. He said it was a new knee injury, sustained during the insurance period, that actually made him unfit for the tournament. He also pointed out that the BCCI had taken a separate insurance policy for the same loss of player fees, and compensation had already been paid under that policy.

However, Justice Mehta remarked, “Mr. Kaul, he (Sreesanth) did not play for a single day.” After hearing both sides, the Court decided to admit the case and stayed the operation of the NCDRC order.

For context, Rajasthan Royals had purchased a Special Contingency Insurance for Player Loss of Fees Cover for ₹8.70 crore for the 2012 IPL season. Under this policy, the insurer was to compensate the franchise for payments made to players who could not participate due to reasons like injuries sustained during the coverage period.

On the very first day of the policy—March 28, 2012—Sreesanth suffered a knee injury during a practice session in Jaipur. Medical reports later confirmed that he was unfit to play in the entire IPL 2012 season. Consequently, Rajasthan Royals filed a claim for ₹82.8 lakh for loss of player fees.

A surveyor appointed by the insurance company confirmed that the injury was “sudden, unforeseen, and unexpected” and that the claim fell within the policy terms. Despite this, United India Insurance rejected the claim, alleging that the franchise had failed to disclose Sreesanth’s pre-existing toe injury at the time of policy issuance.

Aggrieved by this decision, the franchise approached the NCDRC, which ruled in its favour and ordered the insurer to pay the claim amount. Challenging this, the insurance company moved the Supreme Court, which has now stayed the enforcement of the NCDRC’s order.

Appearances:

• For United India Insurance Company: Additional Solicitor General N. Venkataraman
• For Rajasthan Royals (Royal Multisport Pvt Ltd): Senior Advocate Neeraj Kishan Kaul

Case Title: United India Insurance Co. Ltd. vs Royal Multisport Private Limited (Diary No. 33872-2025)