Reprieve for Nimbus

In a major reprieve for Nimbus Communications, Punjab National Bank, Union Bank and the Indian Bank have refused to make payments after the BCCI sought to invoke the bank guarantees of Rs1600 cr furnished by the media company.

In a major reprieve for Nimbus Communications, Punjab National Bank, Union Bank and the Indian Bank have refused to make payments after the BCCI sought to invoke the bank guarantees of Rs1600 cr furnished by the media company.

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The banks cleared their stand before the Bombay HC on Thursday during the hearing on an arbitration petition filed by Nimbus, which had also filed a plea seeking orders restraining BCCI - which scrapped the TV deal on Monday - from encashing their bank guarantee.

In his interim order, Justice SJ Vazifdar also directed the banks not to make payment to BCCI for 72 hours after issuing a notice to Nimbus, in case the banks change their stand.