India to pay Deutsche Telekom $132 m in Devas case as US court confirms award

The United States District Court for the District of Columbia confirmed a $132million award to Deutsche Telekom against the Republic of India. The German company had petitioned the court to confirm this award even as India had countered the petition to get the award dismissed.

This award by the United Nations Commission on International Trade Law Arbitration that found India in violation of the bilateral investment treaty (BIT) between Germany and India. The reason for violation of the treaty was the fact that it had the government of India terminated a spectrum deal between stateowned Antrix and Devas in 2011. Deutsche Telekom was a shareholder in Devas.

DT has sought enforcement of the award in the US. India tried to get this petition dismissed on two counts. First, that the US was not the appropriate jurisdiction to enforce this award, that is, forum non conveniens. The court declined this plea. Second, that DT did not have sufficient evidence to claim this award. However, DT met its burden of proof.

“DT has met its burden of proof. It has supplied copies of the BIT. DT’s notice of arbitration against India and the arbitral panel’s decision,” the court found.

ARBITRAL AWARDS

Multiple shareholders of Devas are pursuing arbitral awards against the government of India in various jurisdictions internationally. Certain Antrix assets have already been seized in the US, and some assets of the government of India have been seized in France and Canada.

Indian courts have dismissed some of these awards, including a $1billion award against the government enforced by the ICC.

The Supreme Court acknowledged that the reason for the dismissal of these awards is the fraudulent incorporation of Devas.