SC stays execution of $1.2 bn pay order against Antrix by US court

SC keeps in abeyance effect of US court order asking Antrix to pay $1.2 bn to Devas

Tribune News Service

New Delhi, November 7

The Supreme Court has kept in abeyance the benefits of a recent US court order that asked ISRO’s commercial arm Antrix Corporation to pay a compensation of USD 1.2 billion to Bengaluru-based start-up Devas Multimedia for cancelling a satellite deal in 2005.

The order came from a Bench headed by Chief Justice of India SA Bobde after Solicitor General Tushar Mehta, representing Antrix Corporation, urged the court to keep at abeyance the effect of US court’s October 27 decision.

“Having regard to the overall circumstances of the case, we are of the view that pending decision in the present special leave petition, it would be highly iniquitous to permit the petitioner — Devas Multimedia Private Limited — to obtain the fruits of the award by execution under any law or convention after obtaining a stay from this court restraining the respondent — Antrix Corporation Limited — from pursuing its objections under Section 34 of the Act against the award,” the Bench said.

As per the agreement in January 2005, Antrix agreed to build, launch and operate two satellites and to make available 70 MHz of S-band spectrum to Devas, which the latter planned to use to offer hybrid satellite and terrestrial communication services throughout India.

The agreement was terminated by Antrix in February 2011 and thereafter Devas approached various courts, including the Supreme Court.

In its November 4 order, the top court said the pending cases between the two parties would be transferred to the Delhi High Court from Bengaluru.

In the October 27 order, the US court had asked Antrix Corporation to pay a compensation of USD 562.5 million to Devas Multimedia Corporation and the related interest rate amounting to a total of USD 1.2 billion.