Antrix to cite 'conflict with public policy' to seek relief

Antrix, the commercial arm of Indian Space Research Organisation (Isro), is likely to challenge the adverse award by Paris-based International Chamber of Commerce (ICC)'s International Court of Arbitration on the ground the arbitral award is in conflict with public policy of India. According to the ruling, Antrix must pay Devas Multimedia $672 million in compensation for terminating a satellite contract. Antrix was to build two satellites for Devas according to the contract, signed in 2005.

Section 34 of The Arbitration And Conciliation Act, 1996, allows an Indian court to set aside an international arbitral award under certain specific technical grounds. Legal experts say Antrix can cite security concerns for not fulfilling the contract, and how going ahead with the contract was against public policy of the country. Antrix might also seek advice from the Attorney General of India in this matter, legal experts added.

According to experts, since both the parties involved in this case - Antrix and Devas Multimedia - are Indian companies doing business in the country, they are bound by Indian Contact Act. "Where the seat of arbitration is in India, one can challenge an arbitral award only on certain limited grounds as stated in Section 34 of the Arbitration and Conciliation Act, 1996," said Ajay Thomas, registrar and director, London Court of International Arbitration (India).