AgenciesIndia has asked a US federal court to dismiss a petition by Deutsche Telekom, which has sought enforcement of a $1.2 billion arbitration award against Antrix Corp over a failed satellite deal, arguing that the court did not have jurisdiction over the matter.
India, in a submission to the United States District Court for the District of Columbia last week, said that there was a unique provision in the bilateral treaty between India and Germany that mandated such matters can only be adjudicated by courts in the respective jurisdictions.
India added that Deutsche Telekom’s petition does not satisfy any exceptions to immunity under the Foreign Sovereign Immunities Act (FSIA).
Deutsche Telekom had in April had petitioned the US court to get India to pay its share of $135 million in damages in the $1.2 billion arbitral award against Antrix Corp for cancelling a satellite deal with Devas Multimedia, in which the German telecom major is a strategic shareholder.
A US federal court for the western district of Washington had last October upheld the $1.2 billion ($562 million plus interest) award that was passed in favour of Devas Multimedia by the International Chamber of Commerce in 2015.
ET has reviewed a copy of the court filings made on September 29.
Deutsche Telekom did not respond to ET’s request for comment until the time of publishing this story. ET could not reach any official spokesperson for the Government of India directly concerned with the issue.
Deutsche Telekom had invested $97.2 million in two tranches in 2008 and 2009 to pick up a 19.2% stake in Devas Multimedia.
In 2005, Antrix signed a deal with Devas to build two communication satellites, which were to use the S-band spectrum and offer hybrid satellite and terrestrial communication services throughout India.
The deal soon got caught up in a political storm after allegations that the S-band spectrum was offered at a throwaway price, resulting in the government cancelling it in 2011 citing national security issues. Devas went in for arbitration, with Antrix losing its case.
India, in a submission to the United States District Court for the District of Columbia last week, said that there was a unique provision in the bilateral treaty between India and Germany that mandated such matters can only be adjudicated by courts in the respective jurisdictions.
“...in accordance with the unique treaty provisions of the 1995 India-Germany Bilateral Investment Treaty, only an Indian court can enforce an arbitral award against India just as only a German court can enforce an arbitral award against Germany,” India said in its submissions to the US court.
India added that Deutsche Telekom’s petition does not satisfy any exceptions to immunity under the Foreign Sovereign Immunities Act (FSIA).
Deutsche Telekom had in April had petitioned the US court to get India to pay its share of $135 million in damages in the $1.2 billion arbitral award against Antrix Corp for cancelling a satellite deal with Devas Multimedia, in which the German telecom major is a strategic shareholder.
A US federal court for the western district of Washington had last October upheld the $1.2 billion ($562 million plus interest) award that was passed in favour of Devas Multimedia by the International Chamber of Commerce in 2015.
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ET has reviewed a copy of the court filings made on September 29.
Deutsche Telekom did not respond to ET’s request for comment until the time of publishing this story. ET could not reach any official spokesperson for the Government of India directly concerned with the issue.
Deutsche Telekom had invested $97.2 million in two tranches in 2008 and 2009 to pick up a 19.2% stake in Devas Multimedia.
In 2005, Antrix signed a deal with Devas to build two communication satellites, which were to use the S-band spectrum and offer hybrid satellite and terrestrial communication services throughout India.
The deal soon got caught up in a political storm after allegations that the S-band spectrum was offered at a throwaway price, resulting in the government cancelling it in 2011 citing national security issues. Devas went in for arbitration, with Antrix losing its case.
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