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Nimbus loses arbitration, asked to pay BCCI Rs 328 cr
MUMBAI: Nimbus Communications has been asked to pay the BCCI Rs 328.405 crore after it lost a five-year arbitration case with the India cricket board, according to a TOI report.
Nimbus used to have the rights to India cricket before Star India took over in 2012.
The arbitral tribunal comprising Justice BP Jeevan Reddy, Justice AS Anand and co-arbitrator Justice SP Kurudkar awarded the arbitration in favour of the BCCI and directed Nimbus to pay the amount “towards unpaid right fees for matches in respect for which Nimbus had already exploited the media rights under the MRLA”, TOI reported.
Nimbus also has been directed to pay an additional Rs 25 lakh as costs within two months from the date of the award, which was given out last week, alongside interest on the entire amount at 9% interest per annum from 18 August 2012 until realisation.
“The arbitral tribunal has also dismissed all the counter-claims put forward by Nimbus,” the adjudication read. The BCCI was represented by its law firm Cyril Amarchand Mangaldas, who now works full time with the cricket board in coordination with CEO Rahul Johri.
The TOI report further noted that in 2012 Nimbus had filed three arbitration claims against the BCCI after the latter terminated its contract for broadcast rights in 2011.
The first claim, which went in favour of Nimbus, was that the BCCI defaulted on its payment for supply of OB equipment and technical services. The BCCI’s counter claims were dismissed.
The second claim was that the BCCI defaulted on payments for television production. For this, Nimbus had claimed Rs 14.5 crore (Rs 145 million) with accumulated interest and the arbitration was awarded in its favour in 2015.
The third arbitration claim was for the termination of Nimbus’ media rights agreement with the BCCI.