SC dismisses Devas petition to stay liquidator’s hand, CFO News, ETCFO

New Delhi: The Supreme Court has dismissed Devas Multimedia’s plea to stay the liquidator’s hand against it pending proceedings in another case in Delhi High Court, and instead asked the company to pursue the appeal pending before the National Company Law Appellate Tribunal against liquidation.

A bench comprising Justices Hemant Gupta and V Ramasubramanian dismissed the plea on Tuesday.

The National Company Law Tribunal (NCLT) on May 25 ruled that the company had been incorporated with the singular intention of defrauding Antrix, the commercial wing of the Indian Space Research Organisation, and allowed Antrix’s plea that Devas be wound up.

Devas’ appeal against this order is pending at the NCLAT.

Devas had also approached the Delhi High Court for enforcement of a $562 million international arbitration tribunal award against Antrix. That is also yet to be decided.

A US court had ruled in Devas’ favour in October 2020. The Supreme Court of India on November 4 kept the order in abeyance, at ISRO’s request.

The NCLT had asked the liquidator appointed by it to take over the management and control of the company’s properties and report to it by July 7.

This is the second round of litigation between Devas and Antrix over a 2005 contract to supply satellites to the ISRO wing. The contract was cancelled by the government over allegations of collusion between company executives and a section of ISRO officials.

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