SC rejects NCLT order against Devas Multimedia

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SC rejects NCLT order against Devas Multimedia

The Supreme Court rejected an appeal filed by Devas Multimedia and its shareholder Devas Employees Mauritius Pvt Ltd against an NCLT order to wind up the company. A detailed verdict is likely to be uploaded by the afternoon. The Bengaluru-based company has been involved in a decade-long legal tussle with ISRO's commercial arm Antrix.

The apex court order came after Devas lost the appeal to the National Company Law Appellate Tribunal NCLT ISRO s commercial arm moved the NCLT for liquidation of Devas on allegation of commitment of fraud. After the NCLT ruled in favor of Antrix, Devas filed an appeal at the NCLAT. The company moved to the Supreme Court after the NCLAT ruled against Devas.

The NCLT order had stated that Devas Multimedia was incorporated with a fraudulent motive to collude and connive with the then officials of Antrix Corporation to get bandwidth from it by entering into an agreement in 2005, which was subsequently cancelled by the government. The order was upheld by the NCLAT.

The agreement between Devas and Antrix was intended to achieve a first-of-its-kind and a tremendous innovation, according to NCLAT. Devas introduced and utilised technologies like never before and was a huge revenue generator for Antrix.

As per Antrix petition before NCLT, its former officials along with the chairman executed a contract that was terminated on February 25, 2011 as it was fraudulently obtained in connivance of then officials.

The commercial arm of ISRO before NCLT said that the then officials of Antrix Corporation including its then chairman had executed a contract on January 28, 2005, according to the winding up petition filed by the commercial arm of the company.