The Supreme Court of New York has dismissed a claim by the Lalit Modi-controlled Modi Entertainment Television against ESPN Inc and ESPN Software India Pvt Ltd and has instead directed Modi Entertainment to pay $2.4 million to the sports broadcaster towards subscription dues.

The two parties have been locked in a legal battle for the last three years over their distribution agreement and dues.

While Modi could not be reached for his comments, Ajay Bahl, ESPN Software India's lawyer, told Business Standard: "All claims made by Modi Entertainment in an action brought in the Supreme Court of the State of New York against ESPN Inc and ESPN Software India were rejected by the jury.

"Instead, ESPN Software India succeeded in the counter-claim it had filed against Modi Entertainment in this proceeding and was awarded $2.4 million."

Modi Entertainment and ESPN had an agreement to distribute the sports channel in the country, which ended in December 2000.

ESPN did not renew the contract. Modi Entertainment filed a case in the New York Supreme Court to allow it to distribute the sports channel in India and claimed advertisement revenue from ESPN.

As per the agreement, ESPN was to share 50 per cent of the advertisement revenue in excess of $2.46 million with Modi Entertainment. Modi Entertainment also claimed damages from ESPN Inc and ESPN Software India for not renewing its contract as a distributor.