Lawstreet Journal

“Petition involves abuse of law”: Karnataka HC dismisses petition challenging winding-up proceedings of Devas by Antrix Corporation with Rs. 5 Lakhs cost

Lawstreet Journal 3 May 2021 9:03pm

Image courtesy: Lawstreet Journal Judiciary “Petition involves abuse of law”: Karnataka HC dismisses petition challenging winding-up proceedings of Devas by Antrix Corporation with Rs. 5 Lakhs cost

The Karnataka High Court on Wednesday (28/04/2021), dismissed a writ petition filed by Devas Employees Mauritius Private Limited, a minority stakeholder in Devas Multimedia Private Limited, challenging the winding-up proceedings of the multimedia company initiated by ISRO's commercial wing Antrix Corporation. 

The order was given by a Single-member Bench of the High Court comprising Justice P.S. Dinesh Kumar.

The matter arises from a 2005 deal between Antrix Corporation and Devas Multimedia Private Limited for the lease of space segment capacity on ISRO/Antrix S-Band Space Craft. Devas have also received several foreign investments after the execution of the deal. However, in 2011 Antrix unilaterally terminated the deal. Subsequently, Devas initiated arbitration proceedings in the International Chamber of Commerce Arbitral Tribunal. The tribunal awarded a favourable order to Devas which called for payment of USD 562.5 Million as compensation by Antrix. 

Before the Arbitral Award could be enforced, the Central Government authorised the Chairman & Managing Director of Antrix Corporation to present a petition to wind up Devas. Accordingly, a petition was filed by Antrix before NCLT, Bengaluru. The petitioner in the present case approached the NCLAT, Chennai challenging the NCLT decision to admit the case. NCLAT asked the petitioner to join as a party in the NCLT proceedings. 

In the writ petition counsel for the petitioner, Rajiv Nayar argued that the Central Government had not given a hearing to Devas before granting Antrix the right to present the winding-up petition. The counsel pointed to the discrepancies in various provisions of Section 272 of the Companies… Continue Reading...


Tagged: Karnataka high court  
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