Permanent Court of Arbitration Rules Against Antrix Coroporation in Devas Case [ Current Affairs ]

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Permanent Court of Arbitration (PCA) tribunal in The Hague, Netherlands has ruled against Antrix Corporation in the case with Devas Corporation over sharing of spectrum on satellites.

Image shows the court

Image shows the court

showing image of court

  • A PCA tribunal has found that the Union Government’s actions in terminating a contract between Devas and Antrix Corporation Ltd.
  • PCA also found that it has denied Devas commercial use of S-band spectrum constituted forfeiture (state actions in modifying the property rights of an individual in the exercise of its sovereignty).
  • After the ruling, India may have to give 1 billion payments to Devas.

What is the case?

  • Devas Corporation and Antrix Corporation had struck a deal, which had provided for the launch of two satellites allowing Devas in 2005.
  • In India, These satellites were to establish a hybrid satellite and global communications network to supply wireless audio-visual, broadband, and mobile internet service.
  • Antrix Corporation terminated the contract citing changes in Indian rule and that the allocation of S-band Spectrum to companies unconnected with India’s space programme was now regarded as a risk to national security.
  • Devas had moved to PCA, naming Antrix had contended that the national security and force majeure issues reasons for termination of deal as “contrived excuses”.
  • It also asked damages amounting to 1.6 billion dollars from Indian Government in the UNCITRAL (United Nations Commission on International Trade Law) Arbitration Rules.

Antrix-Devas deal

  • In a setback to New Delhi over deletion of the deal between Antrix Corporation, the commercial arm of Indian Space Research and Bengaluru-based startup Devas Multimedia.
  • It is the marketable arm of Indian Space Research Organisation (ISRO).
Image shows the ISRO

Image shows the ISRO

showing image of ISRO

About Permanent Court of Arbitration (PCA)

  • PCA is an inter-governmental organization established in 1899. PCA is located at The Hague in the Netherlands.
  • PCA is not a court in the traditional sense, but a permanent structure for arbitral tribunals constituted to resolve specific disputes.
  • PCA seeks to facilitate mediation and other forms of dispute resolution involving various combinations of states, state entities, international organizations, and private parties.
  • PCA was the first permanent intergovernmental organization that provided a platform for the resolution of international disputes through arbitration and other peaceful means.
  • The PCA also administers cases under the arbitration rules of the UNCITRAL.

- Published on: July 28, 2016