US Court Confirms $562.5 Million Arbitral Award for Devas Against Antrix
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TL;DR
- US Ninth Circuit Court upholds $562.5 million award for Devas against Antrix.
- Jurisdiction confirmed under the Foreign Sovereign Immunities Act.
- Forum non conveniens found not applicable in award enforcement.
- Order affirms registration for Devas Multimedia America Inc, not other shareholders.
Overview
The United States Court of Appeals for the Ninth Circuit has confirmed a $562.5 million arbitral award in favor of Devas Multimedia against Antrix Corporation, relating to the termination of a satellite agreement.
The decision addresses jurisdiction under the Foreign Sovereign Immunities Act and the applicability of the forum non conveniens doctrine in the enforcement of foreign arbitral awards.
What Happened
The Ninth Circuit Court affirmed the confirmation of a $562.5 million arbitral award in favor of Devas Multimedia against Antrix Corporation, the commercial arm of the Indian Space Research Organisation.
The dispute stems from a 2005 agreement for satellite services, which Antrix terminated in 2011 following a decision by the Indian government not to permit commercial use of S-band spectrum.
Devas initiated ICC arbitration, which resulted in the tribunal awarding damages in 2015 for wrongful repudiation.
After confirming the award in US District Court, Antrix appealed, initially prevailing on jurisdiction. However, the US Supreme Court reversed, clarifying FSIA requirements and remanding to the Ninth Circuit, which then upheld enforcement.
The Ninth Circuit held that forum non conveniens does not apply to New York Convention enforcement proceedings, and retained jurisdiction despite Indian courts having set aside the award, directing lower courts to consider that aspect.
Context
The Devas v. Antrix dispute dates to a 2005 satellite services agreement, terminated by Antrix in 2011 when the Indian government withdrew spectrum allocation support.
The ICC award was initially for $562.5 million, but with interest, the amount now reportedly exceeds $2 billion. Indian courts have subsequently set aside the award, an issue addressed in part by the Ninth Circuit decision.
Confirmation of foreign arbitral awards in the US is governed by the New York Convention, with FSIA framing sovereign immunity claims from foreign state-owned companies.
Why It Matters
- The ruling confirms that US courts can enforce foreign arbitral awards against sovereign-owned entities under the FSIA arbitration exception.
- Clarification that forum non conveniens is not an available defense in New York Convention enforcement proceedings increases enforceability of arbitral awards in the US.
- The judgment is significant for parties seeking to enforce or challenge international arbitral awards involving state-affiliated companies in the United States.