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In a relief to the Airports Authority of India, a superior Canadian court has revoked an earlier order that allowed shareholders of Devas Multimedia to seize assets of the Indian airports agency in Montreal.
“AAI was able to prove that it had immunity against State-related issues, and it could not be held responsible for any of the matters related to bilateral agreements between India and other countries. The court passed an order freeing AAI’s assets. It, however, told Devas Multimedia, if it still wished to pursue the matter, it would have to file a fresh and separate petition,” said a source close to the case.
Last week, BusinessLine had reported that a Canadian district court had granted shareholders of Devas the right to seize assets belonging the AAI in Montreal to enforce a $111-million award given by United Nations Commission on International Trade Law. According to a spokesperson for the shareholders, assets worth $30 million had already been seized, including air navigation and aerodrome charges collected by the International Air Transportation Association (IATA) on behalf of the AAI. The order also impacted Air India because it uses IATA services to collect money from travel agents in different countries through the global distribution systems.
Also read: US court allows Devas shareholders to register arbitration award
After hearing both Air India and AAI, Justice Michel A. Pinsonnault of the Superior Court of Quebec passed a thirty-page order. A copy of the judgment was seen by BusinessLine .
“In light of the provisions of the State Immunity Act, the first application for a Seizure Before Judgment by garnishment of November 15, 2021, involving the mis-en-cause, Airports Authority of India, and its assets, should not have been heard on an ex parte basis without prior notice being properly served upon the misen-cause and without determining beforehand on the merits the State Immunity status claimed by the mis-en-cause, Airports Authority of India,” the order said.
The court further askedIATA to release all AAI assets seized by it.
However, Justice Michel A. Pinsonnault quashed Air India’s petition. In its judgment, the judge passed an order stating that Devas shareholders can seize up to 50 per cent of Air India’s funds held by IATA retrospectively and prospectively.
A Devas Multimedia spokesperson said that “this is a huge win for Devas.”
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