Yes Kurt, I believe that this is so. However, I think the death occurred long after Kaiso died (1980, if I recall). So it would have been the WSKO Technical Committee and Kancho who gave the order.
I don't know the details of the death, but I gather it was a "head-hits-floor" kind of thing. Possibly related to over-enthusiastic competitive spirit.
The Universities in Japan love to build up rivalries and compete with each other in every club pursuit or sports activity possible. That way University X gets to claim superiority over UniversityY, in say, Chess... or Rugby... or Baseball... or Shorinji Kempo. It was possible to imagine this level of raised testosterone could be perverting the purpose behind Randori, of mutual progress and betterment. So outright competition with winners and losers is now discouraged (although Randori within the Dojo is still an important element of training).
Some of the earlier posts talk about this, but I'm summarising in case it was a bit confused (people have been talking about this in several threads, and it doesn't always make sense ).
David Noble
Shorinji Kempo (1983 - 1988)
I'll think of a proper sig when I get a minute...
For now, I'm just waiting for the smack of the Bo against a hard wooden floor....