US appeals court upholds $565m award to Devas; setback for Antrix Corp

The US Court of Appeals for the Ninth Circuit has upheld a $565.2 million compensation award to Indian startup Devas Multimedia against Indian Space Research Organisation's commercial arm, Antrix Corp, in a case stemming from a failed 2005 satellite deal. The decision, made in August 2023, confirms the validity of the award, which has since grown to over $1.2 billion with interest.

The court ruled that Antrix Corp, despite being a foreign sovereign entity, did not enjoy immunity under the Foreign Sovereign Immunities Act (FSIA) as it was governed by a treaty in force for the United States. The court dismissed Antrix Corp's argument that the case should have been decided in India, stating that foreign courts cannot order the seizure of assets in the US to enforce arbitration awards.

Antrix Corp was granted limited relief, as the court noted that the district court had erred in allowing Mauritius-based shareholders of the now-liquidated Devas Multimedia to seize Antrix properties in the US. The Ninth Circuit court also referred the question of whether US courts can decide on the ICC compensation award back to the district court, as the Supreme Court had previously rejected Devas Multimedia's pleas against Delhi High Court orders.

Brief written by urgent.news from The Indian Express's own syndicated text. Machine-written — may contain errors; check the original before relying on it.