By CricketCountry Staff
The Bombay High Court on Monday asked Nimbus Communications to secure a bank guarantee of Rs 305 crores, after the BCCI had made a strong case against the firm for defaulting in payment.
Published: Feb 28, 2012, 10:23 AM (IST)
Edited: Feb 28, 2012, 10:23 AM (IST)
In 2009, the BCCI had renewed its contract with Nimbus for a period of four years, but later scrapped it owing to the defaulting payments © Getty Images
By CricketCountry Staff
Mumbai: Feb 28, 2012
The Bombay High Court on Monday asked Nimbus Communications to secure a bank guarantee of Rs 305 crores, after the BCCI had made a strong case against the cfirm for defaulting in payment.
The bench was hearing an appeal filed by Nimbus, challenging an order that directed it to furnish the guarantee. The amount is supposed to be furnished by means of a bank guarantee within two weeks pending the hearing of BCCI’s dispute with the firm.
“There is merit in the contention of BCCI. They have made out a strong case that Nimbus has defaulted on payments and Rs 305 crore is due,” a division bench of Justices DY Chandrachud and MS Sanklecha told the Times of India.
In January, Nimbus was asked by justice SJ Vazifdar to shelter the amount earned by its channel as advertisement revenue from the home series against England and the West Indies. BCCI is banking on that amount to settle the outstanding dues following the termination of its contract with Nimbus. Channels like Neo Sports and Neo Cricket which were telecasting live international matches played in India are owned by Nimbus.
The division benches, sustaining the order of the single judge, said: “Nimbus has made a feeble attempt to not pay and not comply with the contractual agreement. The single judge is justified in directing Nimbus to furnish the guarantee.” The BCCI counsel said in court that “advertisement revenues collected by Neo Sports could be used to offset the obligations on Nimbus’ behalf”.
In October 2009, Nimbus had renewed its contract with the BCCI for a further four-year term at a whopping price of Rs 2000 crore. However, Nimbus’ inconsistency in payments led to BCCI’s scrapping of the deal.
