CHENNAI: Squash champion
Dipika Pallikal Karthik won an arbitration award of 19.48 lakh on Tuesday, marking the end of a year-long battle with
Borg Energy India Pvt. Ltd
. which had failed to honour its
brand endorsement agreement
with the star.
An arbitral tribunal at the Madras high court arbitration centre passed an award in favour of the squash champion.
Dipika Pallikal had moved the high court under Section 11 of the Arbitration & Conciliation Act for the appointment of an arbitrator over a payment dispute, arising out of a brand endorsement agreement with Borg Energy India Pvt. Ltd.
The chief justice had appointed a former district judge, V Subramanian, as the sole arbitrator. Arbitration was conducted at the Madras High Court Arbitration Centre. The dispute pertained to the non-payment of the third year's brand endorsement fee of 10 lakh for the year 2015-16.
Dipika had filed 5 claims, the endorsement fee for sporting the company logo in her apparel, non-remittance of income tax deducted at source, service tax, compensation for mental agony and legal costs.
The sole arbitrator accepted all the claims and awarded a sum of 19.48 lakh plus interest at the rate of 12% per annum, till the date of payment. The company has been given 3 months to make the payment.
Dipika's lawyer Sanjay Pinto said, "This award will hopefully send out a right message to business houses that use sports persons for brand building."