New Delhi, Apr 15: The Supreme Court today directed three public sector banks - Punjab National Bank, Indian Bank and Union Bank of India - to deposit within 15 days Rs 400 crores with the Prothonotary and Master of Bombay High Court, who would then remit the sum to BCCI's bank account.
This order was passed on an appeal filed by BCCI against the Bombay HC order asking the three banks to deposit this sum with the Prothonotary, who would then redeposit the sums with the respective banks.
BCCI has undertaken that if the suit relating to Nimbus Communications fails, the sum would be returned to the banks along with interest.
BCCI had entered into Media Rights License Agreement with Nimbus Communications Ltd. for the period from 1st April 2010 to 31st March 2014.
Under the agreement, Nimbus Communications had submitted to the BCCI unconditional bank guarantees from PNB, Indian Bank and Union Bank of India. The Bank guarantees had been given to secure payment of dues by the Nimbus Communications to the BCCI.
BCCI terminated the MRA with Nimbus Communications nd sought to encash the bank guarantees which were in the possession of BCCI. However, the banks refused to pay the money to the tune of Rs. 1600 crores under the unconditional bank guarantees.
BCCI filed summary suits against the 3 public sector banks in Bombay High Court.
The High Court granted the 3 Banks leave to defend the suits on a condition that the Banks deposit a sum totalling Rs.400 crores with the Prothonotary and Master of the Hon'ble Bombay High Court, who would then redeposit the sums with the respective banks.
BCCI had filed an appeal before the Supreme Court challenging the order.
