SC dismisses Devas' plea against NCLT's order to wind up firm

The Supreme Court on Monday dismissed 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 engaged in a decade-long legal tussle with ISRO’s commercial arm Antrix. 

The apex court order comes after Devas lost the appeal at both the National Company Law Appellate Tribunal (NCLAT) and the National Company Law Tribunal (NCLT).

ISRO’s commercial arm had moved the NCLT for liquidation of Devas on allegation of commitment of fraud. The NCLT ruled in the favour of Antrix, following which Devas filed an appeal at the NCLAT. NCLAT also ruled against Devas, after which the company moved the Supreme Court. 

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. NCLAT had upheld that order.

NCLAT further said the agreement by Devas with Antrix was "through fraud, misrepresentation or suppression".

According to Devas, the agreement intended to achieve a first-of-its-kind and a tremendous innovation. 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 dated January 28, 2005, which was terminated on February 25, 2011 as it was obtained fraudulently in connivance of then officials.

According to the winding up petition filed by the commercial arm of ISRO before NCLT, the then officials of Antrix Corporation including its then chairman had executed a contract dated January 28, 2005.

Also read: Will continue to seize state assets until India starts talks: Devas Multimedia