BCCSL and WSG Nimbus move to new phase of legal wrangle

The Sri Lankan cricket board (BCCSL) declared on Wednesday that it had secured "a smashing victory" in the legal fight against WSG Nimbus in the Sri Lankan Supreme Court.

WSG Nimbus had attempted to overturn an enjoining order obtained by the BCCSL preventing interference in fresh rights negotiations, but the judge ruled in the cricket board's favour.

Although WSG Nimbus announced the intention to appeal against the decision, a board spokesman declared afterwards: "This is a smashing win for the BCCSL and Sri Lankan cricket. We have secured an injunction order against WSG Nimbus and they have withdrawn from the case."

On Saturday, the BCCSL announced it had signed a memorandum of understanding with Dubai-based Taj Television, after basic agreement was reached on a US$ 14 million, three-year year television, radio and sponsorship deal.

Both parties signed the MOU, despite the legal wrangle that erupted when the Sri Lankan cricket board suddenly cancelled an existing three-year deal after just 10 months.

WSG Nimbus, however, still maintain that the original agreement "is in full force and effect and that the BCCSL's purported termination is unlawful and of no effect and it will continue to protect its rights."

The company is set to launch an appeal against today's decision on the basis that: "The Singapore International Arbitration Centre ("SIAC") is the exclusive forum for the resolution of disputes under the Agreement."

Last week, a Singapore injunction was obtained restraining the board from continuing its action in Colombo.

WSG Nimbus is also believed to have informed Taj TV that they would be in breach of the Singapore court order if they entered into an agreement with the BCCSL. Furthermore, they would be interfering with WSG Nimbus's contractual rights - rights which they would take all available steps to protect.

The BCCSL, though, remains adamant and deny that it is rendering itself in contempt of court by ignoring the Singapore order.

"That court order is not binding on the BCCSL because Singapore has no jurisdiction," said the spokesman, adding, "The court today upheld the decision that the Sri Lankan courts had jurisdiction."

According to the WSG Nimbus the BCCSL is now required to nominate its proposed arbitrator by 9 November. It is expected to ignore this deadline.

Meanwhile, TWI have been awarded the production rights by Taj TV for the West Indies tour of Sri Lanka and preparations are underway for the coverage of the first Test starting 13 November.

The full statements issued by WSG Nimbus and BCCSL read as follows:

"WSG Nimbus refers to the interim ruling by the High Court in Sri Lanka today that it has jurisdiction over the dispute between WSG Nimbus and the Board of Control for Cricket in Sri Lanka ("BCCSL"). WSG Nimbus intends to appeal the decision before the Supreme Court in Colombo on the basis, amongst others, that the Singapore International Arbitration Centre ("SIAC") is the exclusive forum for the resolution of disputes under the Agreement. Furthermore WSG Nimbus confirms that the SIAC has issued a notice to the BCCSL requesting it to nominate its proposed arbitrator. BCCSL is required to make its nomination by Friday 9th November. WSG Nimbus intends to and will proceed with the arbitration before the SIAC. WSG Nimbus reiterates that as far as it is concerned its Agreement with the BCCSL is in full force and effect and that the BCCSL's purported termination is unlawful and of no effect and it will continue to protect its rights through arbitration in Singapore, the agreed jurisdiction under the Agreement."

And:

"The Commercial High Court of the Western Province today dismissed an application by WSG Nimbus Pte Ltd, seeking to set aside the order made by the court earlier in favour of the Board of Control for Cricket in Sri Lanka. The enjoining order restrains WSG Nimbus from interfering with the right of the BCCSL to negotiate with other international broadcasters following the cessation of the master rights agreement between the BCCSL and WSG Nimbus.

WSG Nimbus, through its lawyers, objected to the court hearing this matter on the grounds that the court had no jurisdiction to hear this matter. WSG Nimbus took up the position that the parties had consented to arbitration in Singapore. The BCCSL contended that as the agreement had ceased to exist, there was no question of the arbitration clause being in force, and in any event it was a discretion vested with parties either to go to arbitration or institute action in courts.

After the application by WSG Nimbus was dismissed by Judge L.K. Wimalachandra, WSG Nimbus withdrew from the case. The BCCSL then obtained an interim injunction further preventing WSG Nimbus from interfering with the right of the BCCSL to negotiate with other international broadcasters. Court fixed the case for ex parte trial on the 21st of November.

Romesh De Silva, PC, with Dinal Phillips, Hiran De Alwis, Keshan Thalgahagoda, Ranil Prematilleke, and Nishantha Sirimanne, instructed by Ged Goonaratne of Julius & Creasy, appeared for the BCCSL.

Following the cessation of the agreement with WSG Nimbus, the BCCSL called for bids from interested parties, and signed a memorandum of understanding last Friday with Taj Television Ltd of Sharjah, with regard to television and radio rights outside Sri Lanka, title sponsorships and forty ground runners at matches."