Nimbus Communications has been told by the Bombay High Court to deposit it with either INR 305 crore or provide a bank guarantee pending the hearing of its TV rights dispute with the Board of Control for Cricket in India (BCCI).
BCCI claims that Nimbus, which owns the TV channels Neo Sports and Neo Cricket, still owes it over INR 300 crore for broadcasting the England and West Indies cricket series' with India towards the end of 2011.
Justice S J Vazifdar requested Nimbus use the advertising revenue earned by its sports channels to offset the money it owes the BCCI.
The ongoing delay in payment has cost the broadcaster their ongoing TV rights deal for coverage of matches played by the Indian cricket team, and the BCCI is now seeking compensation.
In court, BCCI counsel Raju Subramanium said the balance sheet of the year ending March 2011 showed INR 7,000 crore is payable by Neo Sports to its parent Nimbus, which could instead be used to pay off the BCCI.
Counsels for Nimbus and Neo Sports opposed the application, claiming that Neo Sports should not be liable for the funds as the terminated rights contract was solely between Nimbus and the BCCI.