HC asks Nimbus to deposit Rs 305 crore with court
Mumbai: The Bombay High Court asked Nimbus Communications, which owns Neo Sports and Neo Cricket, to either deposit an amount of Rs 305 crore in the court or give a bank guarantee pending hearing of the dispute with BCCI.
Justice S J Vazifdar asked Nimbus to secure the amount earned by one of its sports channels as advertisement revenue which the Board of Control for Cricket in India (BCCI) is seeking, to offset its dues following termination of its broadcasting contract by the Cricket Board.
The court was hearing an application moved by the BCCI seeking direction to Nimbus to deposit the money payable to BCCI as deposit in the high court.
BCCI claimed that over Rs 300 crore is due to be paid to them because of the telecast of the England and West Indies series by Neo Sports.
BCCI counsel Raju Subramanium said that ad revenues collected by Neo Sports could be used to offset the obligations on Nimbus`s behalf.
BCCI pointed out the balance sheet of year ending March 2011, which shows that Rs 7,000 crore is payable by Neo Sports to Nimbus and that the money could in fact be used to pay off the BCCI.
Virag and Virendra Tulzapurkar, instructed by Anil Menon, counsels for Nimbus and Neo Sports, opposed the application stating that the terminated contract was between BCCI and Nimbus and Neo Sports was nowhere in picture.
Hence, Nimbus would be liable to pay the amount to BCCI and not Neo Sports, they contended.