On Wednesday, the Apex Court stayed the execution of an arbitral award that required the Indian Space Research Organisation’s commercial arm, Antrix Corporation, to pay compensation of about $1.2 billion to a Bengaluru-based startup, Devas Multimedia Private Limited, over cancelling of a 2005 agreement
A Federal Court in Washington had on Oct 27 ordered execution of the award dated Sept 14, 2015, in favour of Devas Multimedia & asked the Govt of India entity to deposit the compensation with 18 per cent annual interest that worked out to $1.2 billion.
Under the deal signed in Jan 2005, Antrix had agreed to build, launch & operate 2 satellites & to provide 70 MHz of S-band spectrum to Devas by which the private company would offer hybrid satellite & terrestrial communication services throughout India.
Antrix terminated the deal in Feb 2011. The dispute between Antrix & Devas has been pending consideration before the Supreme Court since 2018. Attorney General KK Venugopal, appearing for Antrix Corporation, & solicitor general Tushar Mehta, for the Centre, moved separate applications in the top court to keep the award in abeyance.
“This stay is still in operation & it ties my hands. Till the matter is settled between the parties on whether the proceeding under Section 34 of Arbitration Act will lie in Delhi or Bengaluru, Devas has invoked the jurisdiction of the US court to enforce the award. We have to obtain a stay against the said award,” said Attorney General.
A 3-Judge bench headed by CJI SA Bobde said: “It is highly iniquitous to execute the award without objections under Section 34 to the award are dealt with.”
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