Antrix-Devas Case: Supreme Court Stays US Court Order Asking Antrix to Pay Compensation
While the international arbitral tribunal had passed the award in September 2015, the order to execute it was delivered by a US court last week. The agreement was terminated by Antrix in February 2011
The Supreme Court on Wednesday stayed execution of the international arbitration award that asked Antrix Corporation, the commercial arm of Indian Space Research Organisation, to pay compensation of $1.2 billion to Bengaluru-based start-up Devas Multimedia for cancelling a satellite deal in 2005.
While the international arbitral tribunal had passed the award in September 2015, the order to execute it was delivered by a US court last week.
As per the agreement in January 2005, Antrix had 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. Over the next several years, Devas approached various legal avenues in India. This included the Supreme Court, which directed for a tribunal.
In his October 27 order, the US District Judge ruled that Antrix Corporation pay a compensation of $562.5 million to Devas Multimedia Corporation and the related interest rate amounting to a total of $1.2 billion.
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