Mumbai : It is not often that the Board of Control for Cricket in India’s (BCCI) commercial decisions are overturned in a court of law. Be it the termination of contracts of Sahara, Kochi or Hyderabad IPL teams or even Mohali and Jaipur teams temporarily that is the BCCI has not had too many legal reversals. Its cases are considered water tight. However, Nimbus seems to have achieved a rare triumph recently.
It has come to light that the former broadcasters of the BCCI have been awarded a favourable judgement in an on-going arbitration case between the two estranged parties. Justice VC Daga is believed to have told the board that its stand on the OB equipment and technical service case is unsustainable. It has been asked to pay out Rs 12 Cr to Nimbus.
It is understood that the verdict is final and binding. Justice Daga’s ruling, delivered last Thursday, is now being seen as foreboding of things to come by for the Indian board. If two other cases go this very way, the board could stand to lose hundreds of Cr.
Nimbus and BCCI have been locked in a protracted legal battle since the latter terminated the broadcast deal with Neo – a subsidiary of Nimbus – in December 2011. Nimbus has since sought arbitration on three counts and got a positive ruling in one of them. In another case, it is seeking Rs 14 Cr compensation from the BCCI “for defaulting on payment on television production.”
But the most serious case is the one involving the termination of the deal. Nimbus has claimed the decision as illegal and has demanded Rs 4000 Cr as compensation. The BCCI’s claim on the matter is apparently Rs 302 Cr
Nimbus, which is bidding to make a strong foray into International Cricket Council (ICC) media rights, is looking at the development as a massive vindication of its position although none of its officials were willing to come on record.
The lawyers of the BCCI as well as its top officials were not willing to discuss the matter but a source in the know of things in the board, said that they could challenge the decree.
