The Supreme Court of India has directed three state-run banks to deposit a sum of Rs 400 crore with the Prothonotary & Master of Bombay High Court as part of the bank guarantee money owed to the Board of Control for Cricket in India (BCCI).

Nimbus Communications Limited had submitted an unconditional bank guarantee from Punjab National Bank, Union Bank of India and Indian Bank to the BCCI to secure payment of dues following hitting a media rights license deal.

But, the cricket board terminated the agreement with Nimbus in 2011 due to payment defaults and sought to recover money via the bank guarantees that were submitted with it at the time of signing agreement. But, the three banks refused to pay the dues, to the tune of Rs 1600 crore.

The BCCI then filed summary suits against the three state-run banks.

The case first heard at the Bombay High Court, which asked the three banks to deposit Rs 400 crore with the Prothonotary & Master of the Court, who would then redeposit the amount with the respective banks.

The cricket board then moved to the Supreme Court of India, which yesterday ordered the three banks to deposit the sum of Rs 400 crore within 15 days.

The cricket board has undertaken that it would return the sum along with interest in case the suit fails.