The BCCI has cited non-payment of dues as the reason for abruptly scrapping its ties with Nimbus.
Mumbai: The Bombay High Court has refused to overturn the Board of Control for Cricket in India's (BCCI) decision to terminate its contract with its broadcast partner in India, Nimbus Communications. The court also cited the fact that the banks associated with both parties have refused to pay guarantees, and that they must provide a notice period of three days in case they change their mind.
On Monday, at its working committee meeting in New Delhi, the BCCI had abruptly scrapped its deal with Nimbus, citing the non-payment of dues owed for the coverage of the recently concluded India-West Indies series, after the company had asked the board for an extension on their payment deadline recently, as reported by Cricketnext. The BCCI had also forfeited the bank guarantee amount of Rs. 2,000 crore.
The contract between the BCCI and Nimbus, which was to run until 2014, had recently run into issues regarding payments. In reply to media speculation about the reason behind the BCCI's termination decision, Nimbus' Harish Thawani had said his company had received to official word from the BCCI. The next day, however, Nimbus released an official statement saying that it had "acted in compliance of its contractual obligations and variations agreed between the parties from time to time" and that it was hopeful of a reasoned conclusion in the coming weeks.
The first direct fallout of the BCCI's decision on the rights deal was an instruction to Nimbus to stop providing the live feed of the Ranji Trophy on Neo Cricket. The High Court's decision is a further damaging blow to Nimbus, who have already been in hot soup for lagging behind in payment owed to the BCCI which itself had earlier been charged by the Bombay High Court with breaching terms of contract with Nimbus.