President of the Board of Control for Cricket in India (BCCI) and former Indian cricket team captain, Sourav Ganguly, has approached the Bombay High Court seeking over Rs. 35 crore payable to him pursuant to a 2018-19 Arbitral award against Percept Talent Management and Percept D Mark (India) Limited.
Ganguly has alleged that Directors of Percept have systematically “siphoned” funds from the company to other companies in which they are Directors to avoid payment to creditors. It is, therefore, necessary and in the interest of justice that the “Corporate Veil” is lifted off the debtors.
As per an order passed by an arbitration tribunal on December 9, 2018, Ganguly’s former management companies, Percept Talent Management Ltd and Percept D Mark (India) Limited have to pay him Rs 35 crore as compensation.
The 49-year-old filed the interim application before the high court on June 29 and the matter was heard on July 12. He also sought for the companies to disclose their assets which they have agreed to do on July 20.
The total money to be paid by the two companies, according to the retired cricketer, is more than Rs 36 crore, which includes around Rs 14.50 crore original compensation plus interest accumulated on it for non-payment.
As an interim relief, Ganguly has also sought that the companies be restrained from carrying out any transactions on their properties. Ganguly, in his plea, raised concern that the directors of the companies had siphoned off funds from their accounts to other firms.
Advocate Shardul Singh, appearing for the companies, said they will disclose the assets by July 20. As per a HC order, the arbitration between the parties arose out of a “Player Representation Agreement” through which the respondent companies were to act as as the exclusive manager for Ganguly.
After disputes arose between the parties, the agreement was terminated and Ganguly invoked the arbitration clause in the pact. The arbitration led to an award through which the respondent companies were directed to pay Ganguly a sum of Rs. 14,49,91,000 with interest at the rate of 12 per cent per annum from November 21, 2007, till the realisation of the payment.
A little over Rs 2 crore was paid by the companies, as per Ganguly’s counsels. And the amount which is due currently is over Rs 36 crore, his plea stated. Ganguly, therefore, filed an execution application before the High Court for realisation of the balance amount of the total compensation along with interest.
The HC will hear the plea further on July 26.
