After the Supreme Court on Monday upheld the winding up order against Devas Multimedia on the petition of Antrix Corporation, the government said that it would present the new facts of the case in the international arbitration courts, which have passed order in favour of Devas.
Finance Minister Nirmal Sitharaman on Tuesday told the media that the government will be presenting the Supreme Court’s order in the international arbitration courts. “We will present all the facts of the case to arbitration courts because no country which respect rule of law would tolerate this kind of fraud,” the finance minister said on the future course of action by the government post-SC judgement.
Devas Mutlimedia has won arbitration award to the tune of Rs 15,000 crore on different forums after the government of India terminated its agreement with Antrix Corporation, the commercial arm of the Indian Space Research Organisation (ISRO) in 2011.
When asked if the Supreme Court’s order would be detrimental to investor sentiment, the FM said that the Supreme Court in its judgement itself says that it would not send any wrong message to investors. Corporate affairs secretary Rajesh Verma also informed the media that the National Company Law Tribunal, while giving the winding up order against Devas in January 2021, had already appointed a provisional liquidator in the case. Now after the SC order, the liquidator would initiate the winding up proceedings.
“This decision for winding up and observation of Supreme Court will help India in challenging the awards which proceedings are pending in Netherlands,” says Ajay Monga, Partner, SNG & Partners.
