Tribunal orders liquidation of Devas Multimedia
[ad_1]
The National Company Law Tribunal (NCLT) has ordered the liquidation course of of Devas Multimedia by permitting a petition filed by Antrix Corporation, a industrial arm of the Indian Space Research Organisation.
The Bengaluru Bench of the NCLT has mentioned Devas Multimedia was included with a fraudulent motive to collude and connive with the then officers of Antrix Corporation to get bandwidth from it by coming into into an settlement in 2005, which was subsequently cancelled by the federal government.
The tribunal additionally confirmed the appointment of the provisional liquidator by it earlier on January 19 and directed him to take “expeditious steps to liquidate” the corporate to forestall it from perpetuating its fraudulent actions and abusing the method of legislation.
“The incorporation of Devas itself was with fraudulent motive and unlawful object to collude and connive with then officials of Antrix and to misuse/abuse process of law, to bring money to India and divert it under dubious methods to foreign countries,” the tribunal famous.
‘Sovereign powers’
It additional noticed that the Government of India has “sovereign powers” to border and alter its insurance policies, which incorporates the termination of the settlement in query.
“In the light of aforesaid facts and circumstances of the case, after duly considering the legal position on the issue and by exercising the power conferred on the tribunal … company petition is allowed by ordering to wind up Devas Multimedia Pvt Ltd,” mentioned a two-member NCLT Bench, comprising members R. Rao Vittanala and Ashutosh Chandra, in its May 25 order.
The tribunal has directed the liquidator to submit a report by July 7.
“All persons associated with the affairs of Devas Multimedia are hereby directed to extend full assistance and co-operation to the said Liquidator to discharge his statutory functions,” the NCLT mentioned, directing Antrix to promote this winding-up order.
The NCLT mentioned Devas Multimedia administration is constant to resort to fraudulent actions.
‘Claimed damages’
The tribunal additionally noticed that Devas Multimedia has taken the arbitration out of the nation opposite to the phrases of the settlement. Moreover, whereas accepting the termination of the settlement in query earlier than the ICC court docket, it modified its model and claimed enormous damages.
“Even after the filing of the instant petition, instead of proving to the satisfaction of the tribunal [NCLT] that it is not liable to be wound up, Devas has started a proxy war by approaching NCLAT and the High Court of Karnataka, through Devas Employees Mauritius Pvt Ltd, by raising untenable ground one after the another,” it mentioned.
According to the NCLT, it was not in dispute that Devas will not be finishing up any enterprise operations, after the termination of the settlement in query.
“Devas has failed to show any cogent reasons as to why it should not be wound up and to keep its name on the ROC Karnataka,” it added.
On January 19, it had admitted the petition filed by Antrix Corporation for winding up Devas Multimedia and has appointed a provisional liquidator for the corporate, directing to take management of its administration, properties and actionable claims.
Now, after nearly 4 months, it has allowed the petition of Antrix.
Devas Multimedia was included on December 17, 2004.
According to the winding petition filed by the industrial arm of ISRO earlier than the NCLT, the then officers of Antrix Corporation, together with its chairman, had executed a contract dated January 28, 2005.
This was lastly terminated on February 25, 2011, because it was obtained fraudulently in connivance of the then officers. The investigating businesses — the CBI and the Enforcement Directorate — have unearthed fraud in executing the settlement, Antrix had mentioned.
The CBI later filed chargesheets and the ED had initiated PMLA proceedings. The MCA had additionally initiated an investigation into the affairs of Devas Multimedia, however a keep was granted by the Delhi High Court.
[ad_2]