01
indiantelevision.com Team
MUMBAI: The Supreme Court today directed three public sector banks to deposit within 15 days a sum of Rs 4 billion with the Prothonotary and Master of Bombay High Court, who would then remit the money to the bank account of BCCI.
The BCCI had filed a Special Leave Petition (SLP) before the Supreme Court aggrieved by the Bombay High Court order that prevented it from invoking bank guarantees following the termination of contract with Nimbus Communications.
However, if the BCCI?s suit fails, the said sum would be returned along with interest. Three nationalised banks namely Punjab National Bank, Indian Bank and Union Bank of India had helped Nimbus to furnish un-conditional bank guarantee to the tune of Rs 16 billion to acquire the BCCI media rights.
The bank guarantees had been given to secure payment of dues by the Nimbus to the BCCI.
The BCCI had entered into Media Rights License Agreement (MRA) with Nimbus Communications for the period from 1 April 2010 to 31 March 2014. In November 2011, the BCCI had terminated the MRA with Nimbus for default in payment and sought to encash the bank guarantees which were in the possession of BCCI.
However, the banks refused to pay the monies to the tune of Rs 16 billion under the unconditional bank guarantees. This compelled the BCCI to file summary suits against the three in the Bombay HC.
Much to the disappointment of BCCI, the Bombay HC granted the three banks leave to defend the suits on a condition that the banks deposit a sum totaling Rs 4 billion with the Prothonotary and Master of the Bombay HC, who would then redeposit the sums with the respective banks.
Earlier, Nimbus Communications was directed by the Bombay HC to secure the dues of BCCI by the way of bank guarantee. The order has not been complied by them and the Company faces contempt proceedings, the BCCI said.
