MUMBAI: The Supreme Court today directed three public sector banks to deposit within 15 days a sum of Rs 4 billion with the Prothonotary and Master of Bombay High Court, who would then remit the money to the bank account of BCCI.

The BCCI had filed a Special Leave Petition (SLP) before the Supreme Court aggrieved by the Bombay High Court order that prevented it from invoking bank guarantees following the termination of contract with Nimbus Communications.

However, if the BCCI?s suit fails, the said sum would be returned along with interest. Three nationalised banks namely Punjab National Bank, Indian Bank and Union Bank of India had helped Nimbus to furnish un-conditional bank guarantee to the tune of Rs 16 billion to acquire the BCCI media rights.

The bank guarantees had been given to secure payment of dues by the Nimbus to the BCCI.

The BCCI had entered into Media Rights License Agreement (MRA) with Nimbus Communications for the period from 1 April 2010 to 31 March 2014. In November 2011, the BCCI had terminated the MRA with Nimbus for default in payment 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 16 billion under the unconditional bank guarantees. This compelled the BCCI to file summary suits against the three in the Bombay HC.

Much to the disappointment of BCCI, the Bombay HC granted the three banks leave to defend the suits on a condition that the banks deposit a sum totaling Rs 4 billion with the Prothonotary and Master of the Bombay HC, who would then redeposit the sums with the respective banks.

Earlier, Nimbus Communications was directed by the Bombay HC to secure the dues of BCCI by the way of bank guarantee. The order has not been complied by them and the Company faces contempt proceedings, the BCCI said.

MUMBAI: The Bombay High Court came down on the State Government for not recovering dues of Rs 77.9 million from cricket?s richest body, the Board for Control for Cricket in India (BCCI).

The money is for providing police security for Indian Premier League (IPL) matches in 2010 and 2011.

A division bench of Justice A.M. Khanwilkar and Justice A.P. Bhangale was hearing a public interest litigation stating that the BCCI owed over Rs 50 million to the state for the security it had provided for the IPL matches in Navi Mumbai?s DY Patil stadium.

"We fail to understand why the issue has remained unresolved for such a long time. If the board had sent requisition for security, it would be primarily responsible to pay the amount as demanded, as per the extant regulations and norms by the State authorities," the division bench noted.

Assistant government pleader VS Gokhale said that demand notices have been issued to BCCI but they had not paid. The BCCI, though, maintains that the stadium owner and the concerned IPL franchise are supposed to pay the charges.

The matter will be next heard on 13 March.

MUMBAI: It was double victory for the BCCI which was basking in glory of the record title sponsorship deal signed by Pepsi for IPL. Kings XI Punjab (KXIP) has agreed to settle its legal disputes with India?s cricket board outside the court.

The BCCI resolved its dispute with Kings XI Punjab over alleged breach of franchisee agreements. The franchise owners have agreed to pay Rs 10 million for the breach of agreement.

According to reports, BCCI officials had met representatives of KXIP in Mumbai on Wednesday to find a middleground.

The BCCI had in 2010 terminated its franchise agreement with KXIP following which the franchise approached Bombay High Court challenging the decision.

A division bench of Bombay HC had upheld the injunction order passed by a single bench which saw the franchise being re-instated.