Nimbus has won 2nd arbitration judgment in a row vs BCCI.
Pursuant to disputes that arose between Nimbus and BCCI in late 2011, arising out of 3 separate contracts; three separate Arbitration proceedings were commenced.
In the 1st of those, the Arbitral Tribunal ruled entirely in favor of Nimbus, the judgment being issued in and around August 2014. This was in relation to supply of equipment and technical services. The total amount including principal amount, interest and costs was approx. Rs 10 crore. BCCI’s appeal in that regard was dismissed by the High Court of Bombay and no further appeal is now possible due to the period allowed for further appeal now having expired.
In the 2nd Arbitration proceedings, on 31 August 2015, The Arbitral Tribunal comprising of Justice S. H. Kapadia (Justice S H Kapadia was the 38th Chief Justice of India) as sole arbitrator ruled in favor of Nimbus Communications Limited (“Nimbus”) against Board of Control for Cricket in India (BCCI). 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 in 2 parts with interest and costs.
• The Claim of Nimbus for 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% p.a. from October 28, 2013 till date of payment.
• Lastly, costs quantified at Rs. 55,73,467/- have also been awarded to Nimbus.
The above amount payable to Nimbus by BCCI works out to Rs. 11,88,55,303/- as on date of Award ie August 31, 2015.
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 4000 crore plus interest.