BCCI directed to pay Rs 12 crore to Nimbus
A court-appointed arbitrator has upheld Nimbus Communications' claim of almost Rs 12 crore ($1.8 million) against the BCCI for wrongful termination of various broadcast deals
ESPNcricinfo staff
03-Sep-2015
The BCCI have lost two out of three arbitration proceedings against Nimbus • Cricket Australia
A court-appointed arbitrator has upheld Nimbus Communications' claim of almost Rs 12 crore ($1.8 million) against the BCCI for wrongful termination of various broadcast deals. The BCCI now finds itself on the wrong side of two of the three arbitration proceedings underway with Nimbus.
On August 31, the sole arbitrator, retired chief justice of India SH Kapadia, ruled in favour of Nimbus after a drawn out procedure that began in October 2013.
The arbitrator has asked the BCCI to settle Nimbus' claims with interest and costs. The total amount of the claim is Rs 11.88 crore - Rs 9,81,09,800 as principal plus interest at 9% per annum from October 28, 2013, till the date of payment, and the charges for revoking bank guarantee commission.
In December 2011, the BCCI had terminated its six-year broadcast deal with Nimbus, starting from 2009 and worth Rs 2000 crore, owing to payment issues. Nimbus had approached the court to overturn the decision soon after. The matter has since gone into arbitration and according to a Nimbus insider, the broadcaster could gain in excess of Rs 4000 crore ($600 million), including interest, if things go its way.
Nimbus have already won the first arbitration hearing in August last year, and the BCCI was asked to pay Rs 10 crore ($ 1.5 million) in relation to hiring of equipment and technical services. The BCCI had challenged that ruling in the Bombay High Court but Justice RD Dhanuka had dismissed their appeal.
After the latest verdict, a BCCI insider indicated that the board will again seek an appeal in the Bombay High Court.
The arbitrator's verdict in both the cases is a huge setback for the BCCI considering the biggest claim of the case is yet to be decided upon and is expected to be so in the coming months.
The BCCI has suffered numerous financial setbacks in the recent past. Besides the Nimbus cases going against them, they recently lost arbitration proceedings in excess of Rs 550 crore for abruptly terminating IPL franchise Kochi Tuskers Kerala.