By Diksha-
A federal Court in the Unites States on Tuesday confirmed an arbitral award passed by the International Court of Commerce (ICC) on 14 September, 2015 in favor Devas Multimedia Pvt. Ltd.
The Court has asked the Antrix Corporation, the commercial branch of India Space Research Organisation (ISRO) to pay $1.2 Billion compensation to Devas Multimedia Pvt. Ltd., a Bengaluru start-up.
The compensation has been granted in lieu of a deal in January 2005 between the two companies for building and launch of two satellites which was cancelled by Antrix Corp. in February 2011.
Devas had moved to the US federal Court for confirmation of the ICC award in 2018. A give-year stay had been imposed by the Court last year on the proceedings to await progress of cases filed in the Indian Courts.
The stay was removed by the Court on September 17 this year.
The Antrix argued that the Court should not treat it as an extension of the Government of India and the present Court had not jurisdiction to confirm the Arbitral award of the ICC but the contention was rejected by the Court saying that,
“Antrix has no satellites, satellite launch vehicles, transponders, or electromagnetic spectrum of its own, but rather markets assets owned and controlled by ISRO and DOS [Department of Science]. Most of Antrix’s commercial activities are financed by the Government of India. Much of Antrix’s leadership is appointed by the Government of India”.
The Court also stated that it has requisite jurisdiction under the US Foreign Sovereign Immunities Act.
Antrix was also thwarted for its argument that the award was granted by the ICC where it did not have an appointee as the Court said that it had failed to appoint its arbitrator even after repeated notices for doing so.
The Court confirmed that a total of $672,791.593.75 shall be paid by Antrix Corp. to Devas including 3 month USD LIBOR +4% from 25 Feb, 2011 to September 14, 2015.
The Corporation also has to pay a simple interest of 18% p.a. from the date of the award to the date of the judgment.