 "Antrix loses case against Devas, ordered to pay $672 mn as damages")
Antrix Corp will file an “application for remedy” in a court with the support from the Department of Space, after an international tribunal ruled Antrix to pay $672 million (Rs 4,360 crore) to Devas Multimedia as compensation for cancelling a satellite leasing contract by India, citing national security.
“The ICA (International Court of Arbitration) award against Antrix in the Devas case is shocking. Antrix, with the support of Department of Space, is preparing to file in court its application for remedy," said a statement from Antrix on Wednesday. A spokesperson for the space agency could not clarify the courts and jurisdiction it would seek remedy.
Antrix, a unit of Indian Space Research Organisation (Isro), had lost the arbitration battle in ICA.
An Isro official, who did not want to be named, said the space agency would seek the Centre’s help in battling the crisis, as the decision to annul the contract was based on the recommendation by the Cabinet Committee on Security. “The government should advise us. Antrix will face a financial crisis if the award is honoured,” said the official.
The ICA award is Rs 4,360 crore, more than double Antrix’s revenues of Rs 1,850 crore for 2014-15. Antrix earned profits of Rs 896 crore in the last five years.
Devas has filed a case in the Delhi High Court to direct Antrix to pay damages. In 2011, India cancelled the deal with Devas, saying the ‘S-band’ spectrum allocated the GSAT-6 satellite that was to be leased to the firm would be used for strategic purpose and not for commercial use.
Devas had gone to the International tribunal claiming damages of $1.6 billion for scrapping the deal.
Experts say most multinational firms are careful to specify the procedure of arbitration, even explaining the governing law, the place of arbitration and the seat (the courts subject to the arbitration). “You can’t claim sovereign immunity as you are bound by a contract,” said Sanjay Hegde, a senior Supreme Court lawyer.
Devas has investors such as Columbia Capital, Telecom Ventures and Deutsche Telekom, who hoped to earn high valuation for the company by providing high speed internet access on to mobile devices.
The government in 2011 had said the lease of 90 per cent of the ‘S-band’ transponder space segment capacity to Devas was through two satellites to be funded, built and launched by Isro. It said Isro had neither allocated the ‘S-band’ spectrum nor had a joint venture with Devas.
