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Nimbus Communications has won the second (out of the total three filed) arbitration against the Board for Control of Cricket in India (BCCI) in the Arbitral Tribunal comprising of Justice S H Kapadia as sole arbitrator.
The arbitral proceedings commenced on October 22, 2013 arising out of disputes pertaining to the TV production agreement between Nimbus and BCCI dated September 29, 2010, which was terminated by BCCI on April 20, 2012.
The Tribunal has upheld and allowed the claim of Nimbus’ claims with interest and costs, which includes the principal amount along with interest (on principal amount from the date of invoices till October 28, 2013, being date of filing statement of claim by Nimbus) amounting to total of Rs 9,81,09,800 and further interest @9% p.a. on principal amount from October 28, 2013 till date of payment. Additionally, the Tribunal has awarded Rs 20,47,738 claim of Nimbus for reimbursement of Bank Guarantee Commission charges with interest @9% pa from October 28, 2013 till date of payment. Lastly, costs quantified at Rs 55,73,467 have also been awarded to Nimbus.
The total amount payable to Nimbus from BCCI thus amounts to Rs 11.88 crore.
The company had won the media and production rights to BCCI matches in 2009 for six years, at a reported cost of Rs 2,000 crore. In December 2011, the cricket body terminated the contract, resulting in legal proceedings by Nimbus. BCCI’s reason was that Nimbus had failed to pay dues worth Rs 50 crore for the broadcast rights of India cricket matches. The first leg of the arbitration was in August last year and Nimbus’ claim for Rs 12 crore was upheld.
With this, Nimbus has now won both its completed arbitrations vs BCCI. The 3rd Arbitration, relating to media rights, is underway and expected to conclude in the coming few months. Nimbus’ claim in the same is in excess of Rs 4,000 crores plus interest.
