Setback for Nimbus as High Court rules in BCCI's favour

Updated: 28 February 2012 11:19 IST

Observing that the BCCI has made out a strong case against Nimbus Communications which has defaulted in paying its dues to the cricket body, the Bombay High Court on Monday directed the channel to furnish bank guarantee of Rs 305 crore pending further hearing in the case.

Setback for Nimbus as High Court rules in BCCI's favour

Mumbai:

Observing that the BCCI has made out a strong case against Nimbus Communications which has defaulted in paying its dues to the cricket body, the Bombay High Court on Monday directed the channel to furnish bank guarantee of Rs 305 crore pending further hearing in the case.

The court directed Nimbus Communications which owns sports channels like Neo Sports and Neo Cricket to furnish security by way of bank guarantee of Rs 305 crore within two weeks pending hearing of its dispute with Board of Control for Cricket in India(BCCI).

"There is merit in the contention of BCCI. They (BCCI) have made out a strong case that Nimbus has defaulted on payments and Rs 305 crore is due," a division bench of Justices D Y Chandrachud and M S Sanklecha said.

The bench was hearing an appeal filed by Nimbus challenging an order passed by a single judge directing it to furnish guarantee pending hearing of its petition.

Justice S J Vazifdar had on January 19 asked Nimbus to secure the amount earned by one of its sports channels as advertisement revenue which the BCCI is seeking to set off its dues following termination of the contract.

Upholding the order of the single judge, the division bench said, "The single judge is justified in directing Nimbus to furnish guarantee. Nimbus has made a feeble attempt to not pay and not comply with the contractual agreement."

BCCI claimed that Rs 305 crore is due to be paid to it for the telecast of the England and West Indies series by Neo Sports.

Raju Subramanium, counsel for BCCI, said that the advertisement revenues collected by Neo Sports could be used to offset the obligations on Nimbus's behalf.

Nimbus had signed a four-year deal with the BCCI in October 2009 for a whopping Rs 2000 crore. But it had consistently defaulted in making payments to BCCI prompting the latter to scrap the contract recently.

Topics : Cricket Board of Control for Cricket in India Bob Willis
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