[ By Bobby Anthony ]The Supreme Court has asked Devas Multimedia to let it know if it is willing to waive off the interest amount on the arbitral award of USD 672 million (Rs 4,432 crore), won at an international tribunal in 2015 against the Indian Space Research Organization (ISRO) owned Antrix Corporation.A Supreme Court bench headed by Chief Justice of India S A Bobde and comprising Justice...
The Supreme Court has asked Devas Multimedia to let it know if it is willing to waive off the interest amount on the arbitral award of USD 672 million (Rs 4,432 crore), won at an international tribunal in 2015 against the Indian Space Research Organization (ISRO) owned Antrix Corporation.
A Supreme Court bench headed by Chief Justice of India S A Bobde and comprising Justice L Nageswara Rao and Justice Indu Malhotra took into consideration the interest component against Antrix Corporation, and said that it was increasing with every passing day.
They asked the lawyer representing Devas to be reasonable on the matter and let it know if it could waive off this interest component.
The Supreme Court was hearing an appeal against the Delhi High Court 2018 verdict, ruling that the Bengaluru court had jurisdiction to hear the dispute. The SC bench observed that the interest meter is running very fast, and it does not want this factor to financially crush the government firm.
Attorney General K K Venugopal, representing ISRO, contended that the government has no money to pay Devas Multimedia. He cited the ongoing criminal case against some public servants and others following allegations that fraudulent means were adopted to finalize the contract between the Devas and Antrix.
The SC bench asked the Attorney General that if there is an arbitral award against Antrix, and it does not matter, whether it is taken up for hearing in Delhi or in Bengaluru. The SC also added that government- owned Antrix is incurring huge interest every day.
Since the Attorney General cited laws on arbitration and insisted that Bengaluru court has the jurisdiction, the SC asked, “Why don’t you agree to Delhi?”
The SC bench then asked the Attorney General and senior advocate Mukul Rohatgi, who represents Devas, to let it know by April 15 about whether the dispute should be resolved in Delhi or in Bengaluru.
In 2018, the Delhi High Court had stated in its verdict that in 2011, Antrix had moved a plea in the Bengaluru city civil court to restrain Devas from proceeding with the arbitration.
Also, Antrix's plea wanted to stop the arbitral tribunal set up by Paris-based International Chamber of Commerce (ICC) from taking this matter further.
Since this matter was pending, the International Court of Arbitration in its September 2015 award asked Antrix to pay damages amounting to USD 672 million (Rs 4,432 crore) to Devas for “unlawfully” terminating the deal in 2011, citing national security reasons.