US court denies proceedings in NCLT to destroy Dewas Multimedia

Fulfilling the need to preserve international comedy, a US federal court has refused to stay the proceedings initiated in India to liquidate Dewas Multimedia Private Limited by Antrix Corporation – ISRO’s commercial arm – Which has been compensated by an international for $ 1.2 billion. Arbitration Forum in a failed 2005 deal. On February 24, a Western District Washington court in Seattle refused to stay the proceedings in a National Company Law Tribunal (NCLT) bench in Bengaluru, despite a temporary restraining order being issued in the case on February 24. Three foreign multimedia investors in Dewas, and US subsidiary Devas Multimedia America Inc., Has approached the US court, anticipating entering into an agreement with Antrix Corporation on payment of compensation with Antrix Corporation in the wake of the latter’s move to destroy the Bangalore-headquartered Devdas Multimedia at NCLT

. “While substantial evidence suggests that the conduct of the denomination can be carried forward, it is frustrating to curb the interests of this court [ing] in a foreign forum and in defense of unpleasant or oppressive litigation [ing] [its] jurisdiction, The court concludes that the interests in preserving the international comity should bear considerable weight in the case, ”US Federal Judge Thomas Zilli said in his order, denying interference in proceedings in India. Earlier in a temporary order dated February 24, the court stated that Devas Multimedia and “its shareholders, directors, officers, agents, Employees and legal representatives are barred from taking any action in relation to the award. “US $ 1.2 billion confirmed in November 2020” without obtaining court approval. ExplainedAntrix-Devas deal, which was scrapped, Devas Multimedia and Antrix Corporation signed an agreement for ISRO on January 28, 2005 to lease two communication satellites for 12 years to Devas Multimedia at a cost of Rs 167 crore. Be given at The UPA government had in February 2011 dismissed allegations of a Sweetheart deal in the allocation of S-band spectrum to Dewas Multimedia in the backdrop of the 2G scam. The court has also allowed three foreign investors in Devas Multimedia – CC / Devas (Mauritius) Limited, Devas Employees Mauritius Private Limited, Corporation against confirmation of compensation award of $ 2 billion.

Foreign investors and US subsidiaries of Dewas Multimedia allegedly moved the US courts after learning that Dewas Multimedia was attempting to end compensation payments by declaring them as a tortuous entity. Foreign investors claimed that the Law Ministry of India issued an ordinance amending the Indian Arbitration and Reconciliation Act of 1996 to allow courts to obtain an arbitration award if it was proved that “an arbitration agreement or contract Which is the basis of the award… or affected by fraud or corruption

”. He claimed that the NCLT appointed a government official as the “provisional liquidator” of Dewas Multimedia after a petition by Antrix, Which filed a liquidation petition after ordering damages for the 2005 satellite deal. A US federal court said it issued a temporary restraining order on legal proceedings in India in February to prevent Dewas Multimedia from being “unfairly liquidated” and new details suggest that the intervention of Dewas Multimedia is legal in India Actively participating in the proceedings. “The court is satisfied that the involvement of those who interfere in the proceedings in India can serve to mitigate any danger of irreparable damage to them or the petitioner. Further, if the incident is set aside by the Supreme Court of India, the defendant will still be required to file a motion in this court to vacate the confirmation order and judgment, and the intervener shall have such There will be an opportunity to respond to any proposal, The judge said

. “Because the court concludes that the intervenors have not retained their burden to show the possibility of irreparable harm to relieve their burden, and that the international comity concerns counsel against an initial injunction, the court Rejects the offer of preliminary injunction. “Provisional Liquidator M. by the US Federal Court of NCLT. A motion by Jayakumar was also rejected, seeking a stay on proceedings in a US court. On 28 January 2005, Dewas Multimedia and Antrix Corporation signed an agreement to lease two communication satellites for 12 years at a cost of Rs 167 crore for ISRO. Later, a start-up firm, ISRO’s GSAT 6 and 6A satellites built at a cost of Rs 766 crore were to provide multimedia services to mobile platforms in India using space band or S-band spectrum transponders. The UPA government had in February 2011 dismissed allegations of a Sweetheart deal in the allocation of S-band spectrum to Dewas Multimedia in the backdrop of the 2G scam. .