India
Devas: Delhi HC junks Devas appeal against order setting aside $562 million award | India News
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NEW DELHI: In a big victory for Isro’s commercial arm Antrix Corporation, a division bench of the Delhi HC on Friday upheld the single-judge bench order that had set aside the ICC’s arbitration tribunal award of $562. 5 million in favour of Bengaluru-based Devas Multimedia for a failed satellite deal, signed in 2005.
Devas, which has several foreign investors, has been fighting a legal battle against Antrix and the government in several Indian and foreign courts for compensation. The single-judge bench had observed that the ICC award “suffered from patent illegalities and was in conflict with the public policy of India”.
While setting aside the Devas appeal against the single-judge bench order, the division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad said, “The principle of ‘fraud vitiates all solemn acts’ is applicable not only to the primary proceedings, but also to all collateral proceedings that arise out of the same facts and circumstances. The act of fraud is an anathema to all equitable principles and every transaction tainted with fraud must be viewed with disdain by courts. In the case, the Supreme Court had (earlier) held that the commercial relationship between Devas and Antrix is a product of fraud, and as a consequence, the Devas agreement, ICC award, and all other disputes arising out of the transaction would be tainted by fraud. Permitting Devas and its shareholders to reap benefits of the ICC award would amount to this court perpetuating the fraud. ”
In an order on January 17 last year, the SC had upheld a decision of the National Company Law Tribunal to wind up Devas on the grounds of fraud being perpetuated by the company, and also appointed an official liquidator to exercise control over the company.
Devas, which has several foreign investors, has been fighting a legal battle against Antrix and the government in several Indian and foreign courts for compensation. The single-judge bench had observed that the ICC award “suffered from patent illegalities and was in conflict with the public policy of India”.
While setting aside the Devas appeal against the single-judge bench order, the division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad said, “The principle of ‘fraud vitiates all solemn acts’ is applicable not only to the primary proceedings, but also to all collateral proceedings that arise out of the same facts and circumstances. The act of fraud is an anathema to all equitable principles and every transaction tainted with fraud must be viewed with disdain by courts. In the case, the Supreme Court had (earlier) held that the commercial relationship between Devas and Antrix is a product of fraud, and as a consequence, the Devas agreement, ICC award, and all other disputes arising out of the transaction would be tainted by fraud. Permitting Devas and its shareholders to reap benefits of the ICC award would amount to this court perpetuating the fraud. ”
In an order on January 17 last year, the SC had upheld a decision of the National Company Law Tribunal to wind up Devas on the grounds of fraud being perpetuated by the company, and also appointed an official liquidator to exercise control over the company.
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