A US court has ordered Antrix Corporation to disclose financial details, including assets valued at more than $50,000, to the shareholders of Devas Multimedia. This comes after Devas shareholders filed an appeal seeking discovery of Antrix’s assets and purported alter egos as part of its plan to enforce the $1.29-billion arbitration award against India.
Devas’ shareholders told the court that Antrix has been transferring certain business assets to a new company, NewSpace India Limited, wholly owned by the Government of India and under the direct control of the Department of Space. They alleged that “Antrix is being hollowed out,” as its business dealings are being “shifted” to NewSpace, possibly “due to the Devas, Deutsche Telekom, Columbia Capital, and Telecom Ventures liability claims”.
The US District Court of Western District of Washington ordered that all communications from September 14, 2015, reflecting any transfer of accounts, transfer of assets, personnel, intellectual property, customer relationships, or any other thing valued at more than $50,000 from Antrix to NewSpace should be disclosed.
In addition, all documents dated on or after September 14, 2015, reflecting payments over $50,000 that Antrix has made to any entity in the US should also be made available. All documents reflecting amounts over $50,000 owed to Antrix also have to be shared with Devas’ shareholders.
Antrix had questioned the jurisdiction of the US court to pass such an order and contended that Devas’ shareholders do not have the authority to seek discovery of Antrix assets. But this was dismissed by US District Judge Thomas S. Zilly on grounds that shareholders of Devas are a “judgment creditor” and and have “a legal right to enforce the execution of judgment for a specific sum of money.”
Devas Multimedia had won a $1.29-billion award granted by the International Chamber of Commerce (ICC) on September 14, 2015. In October 2020, the award was enforced by the US Federal Court in the Western District of Washington. However, this has been challenged by India.
Matthew D. McGill of Gibson Dunn & Crutcher LLP, lead counsel for a number of Devas’ shareholders, said: “We welcome the court’s careful and well-reasoned ruling. Antrix and India have attempted to subvert the district court’s judgment, but this ruling ensures that it will be enforced.”