Permanent Court of Arbitration Rules Against Antrix Coroporation in Devas Case [ Current News (Concise) ]
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.
- 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.
- 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).
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