20 Oct 2017
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Nimbus wins another arbitration case against BCCI

MUMBAI: It’s 2-0 in favour of Nimbus Communications as the Board of Control for Cricket in India (BCCI) has lost yet another arbitration case in the spate of two months against the media company.

In the latest round, the Arbitral Tribunal headed by retd Justice SH Kapadia has asked the BCCI to pay Rs 12 crore (Rs 120 million) to Nimbus for wrongfully terminating the television production agreement, according to a report in Mumbai Mirror.

The BCCI had terminated the TV production agreement with Nimbus in 2012. This was after the cricket board had terminated the TV rights agreement in December 2011.

Nimbus challenged the termination before the Arbitral Tribunal, which ruled in its favour in an order delivered on 31 August.

According to the report, Justice Kapadia has upheld the claim of Nimbus in two parts, with the amount adding up to around Rs 12 crore (Rs 120 million).

The amount is payable to Nimbus as on 31 August. However, the BCCI is most likely to file an appeal against the order.

In July, the Bombay High Court directed BCCI to pay Rs 9 crore (Rs 90 million) to Nimbus for the supply of equipment and associated services for TV production of matches, Mumbai Mirror had reported.

The BCCI had refused to pay the said amount contending that it must be adjusted from the payment claimed by the BCCI under the TV rights agreement.

The cricket board had terminated its TV rights contract with Nimbus in 2011 and had claimed Rs 362 crore (Rs 3.62 billion) from the company under that agreement.

Subsequently, Nimbus terminated the equipment supply and invoked the arbitration clause and filed arbitration proceedings against the BCCI.

The bench of Justice RD Dhanuka observed that the BCCI’s plea of adjusting the said amount with the dues it was claiming against Nimbus was legally untenable.

As per the report, the BCCI also sought a stay from the HC of its own order, so that it could approach the higher court. However, Justice Dhanuka rejected the request.

In another setback for the BCCI, the terminated Kochi Tuskers Kerala had won an Rs 550 crore (Rs 5.5 billion) arbitration appeal against the cricket board in July.