Supreme Court orders banks to deposit Rs.400 Crores in BCCI-Nimbus case

Three banks have been directed to deposit a sum totaling Rs.400 crores, in a case filed by the BCCI to encash the Bank Guarantees from Nimbus, a media release stated on Monday.

updated: April 15, 2013 18:21 IST
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The BCCI had entered into Media Rights License Agreement with M/s. Nimbus Communications Ltd. for the period from 1st April 2010 to 31st March 2014.

Under the agreement, Nimbus Communications Ltd. had submitted to the BCCI unconditional Bank Guarantees from Punjab National Bank, Indian Bank and Union Bank of India. The Bank Guarantees had been given to secure payment of dues by the Nimbus Communications Ltd. to the BCCI.

BCCI terminated the MRA with Nimbus Communications Ltd. and sought to encash the Bank Guarantees which were in the possession of BCCI. However, the banks refused to pay the monies to the tune of Rs. 1600 crores under the unconditional Bank Guarantees.

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