Canadian court authorizes Devas shareholders to pursue seizure of 50% of Air India funds

NEW DELHI : A Canadian court has allowed Devas Multimedia shareholders to continue seizing 50 percent of Air India funds held by global airline body IATA.

The court also granted redress to the Airports Authority of India (AAI), releasing its funds which were seized by the shareholders of Devas Multimedia.

Earlier this month, the court ordered the seizure of Air India and Airports Authority of India (AAI) funds, held by the International Air Transportation Association (IATA), in a case filed by shareholders of Devas Multimedia to enforce arbitration. attribution concerning the cancellation of the Antrix agreement.

On October 27, 2020, a US court asked Antrix Corporation, the commercial arm of the Indian Space Research Organization (ISRO), to pay $ 1.2 billion in compensation to Devas Multimedia, a start-up based in Bengaluru, for the cancellation of a satellite agreement in 2011.

The Canadian court order dated January 8, 2021 said: “Court finds in the interests of justice to limit the scope of Air India’s seizure to 50 percent of Air India funds currently. held by IATA, all retroactively until December 21, 2021, and that henceforth and until further order of the court, the seizure of Air India will be limited to 50% of the funds received and held from time to time by the ‘IATA. “

During the hearing of IAA and Air India’s appeal against the seizure of their funds, IATA told the Canadian court on January 3 that it held $ 17.3 million on behalf of the national carrier and $ 12.76 million on behalf of IAA as of December 31.

Releasing the IAA funds that were seized by Devas shareholders, the court said it “will allow IAA’s request to dismiss and state that the first seizure should not have been heard and granted on a ex parte, without first disposing of the IAA state immunity request “.

IATA helps the IAA to collect charges such as air navigation charges from foreign airlines.

Likewise, IATA retains funds from Air India bookings made in foreign countries through global distribution systems such as Amadeus and Travelport.

In a statement released on Sunday, Devas shareholders said they could “continue to seize Air India funds held by IATA (up to 50%) retrospectively and prospectively,” according to the latest order. Saturday court.

“It’s a huge victory for Devas,” they said.

Under an agreement signed in January 2005, Antrix agreed to build, launch and operate two satellites and to make 70 MHz of S-band spectrum available to Devas, which the latter planned to use to provide hybrid satellite and communications services. land throughout India.

The agreement was terminated by Antrix in February 2011. In June 2011, Devas initiated arbitration proceedings under the Arbitration Rules of the International Chamber of Commerce.

In September 2015, the arbitral tribunal demanded the commercial arm of ISRO to pay $ 672 million.

In his order dated October 27, 2020, Judge Thomas S Zilly, U.S. District Judge, Western District of Washington, Seattle, asked Antrix Corporation to pay Devas Multimedia Corporation $ 562.5 million in compensation and rate of corresponding interest, totaling $ 1.2 billion.

This story was posted from an agency feed with no text editing.

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