The National Company Law Appellate Tribunal (NCLAT) on Wednesday dismissed a petition filed by Devas Multimedia challenging an order of the NCLT to finish up the corporate The NCLAT upheld the sooner order of the Bengaluru bench of the National Company Law Tribunal (NCLT), which had on May 25, 2021 directed completing of Devas Multimedia and appointed a provisional liquidator for the aim .
NCLT’s direction had come across a petition filed by Antrix Corporation, the commercial arm of the Indian Space Research Organisation (ISRO) The NCLT had said Devas Multimedia was incorporated with a fraudulent motive to collude and connive with the then officials of Antrix Corporation to urge bandwidth from it by getting into an agreement in 2005, which was subsequently cancelled by the govt .
This order was challenged by Devas Multimedia and its shareholder Devas Employees Mauritius Private Ltd before the Chennai bench of NCLAT, which on Wednesday dismissed the petition This Tribunal has come to a consequent conclusion that the corporate Appeal isn’t maintainable in law…,” said the two-member NCLAT bench comprising Justice M Venugopal and V P Singh.
The order of completing of Devas Multimedia is “undoubtedly, cemented on, just, fair, reasonable and equitable ground to alleviate an ‘abuse’ and therefore the same is free from any legal flaws,” it added It further said the agreement by Devas with Antrix was “through fraud, misrepresentation or suppression”.
According to Devas, what this agreement intended to realize was first-of-its-kind and an incredible innovation. As a result, Devas introduced and utilised technologies like never before and was an enormous revenue generator for Antrix This Tribunal finds it rather strange that such a huge and vital agreement dated 28.01.2005 was allowed to be signed by a piece of writing Clerk who had no background in science and technology, especially with the functioning of Devas Services and was given remuneration for signing the agreement,” it noted According to the completing 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.
This was terminated on February 25, 2011, because it was obtained fraudulently in connivance of the then officials. Investigating agencies CBI and Enforcement Directorate have unearthed fraud in executing the agreement, Antrix had said CBI had later filed chargesheets and ED had initiated PMLA proceedings. The Ministry of Corporate Affairs (MCA) had also initiated an investigation into the affairs of Devas Multimedia but a stay was granted by the Delhi supreme court .
