Devas interim plea to secure arbitral award not maintainable

Delhi High Court today said it was of the "prima facie" view that Devas Multimedia's interim plea for attaching bank accounts of ISRO's commercial arm - Antrix Corporation to secure damages worth USD 672 million (Rs 4432 crore) awarded to it by an international tribunal, was not maintainable.
"Prima facie I am of the opinion that section 9 (of Arbitration and Conciliation Act) is not maintainable," Justice J R Midha observed and ordered the matter to be listed for preliminary hearing on November 20.
The court asked both sides to file their counter affidavits and rejoinders before the next date when it will hear arguments on whether the plea can be admitted.

Section 9 of the Act allows parties to approach a court for interim measures before, during or after an arbitral award but before it is enforced. The interim measures include securing of the amount in dispute in an arbitration.
Paris-based International Chamber of Commerce's (ICC) arbitration body, International Court of Arbitration, in its September ruling had asked Antrix to pay damages worth USD 672 million (Rs 4432 crore) to Devas for "unlawfully" terminating a deal four years ago, citing national security reasons.
During the brief hearing, court asked Devas if a person does not have the capacity to pay, can section 9 be invoked against him, as it has claimed that Antrix "does not have the immediate financial capability" to pay the damages.

It also observed that Devas had neither invoked section 9 prior to going for arbitration to secure its interests, nor during the proceedings.
Devas, represented by senior advocate Sandeep Sethi, said a plea under section 9 was not moved earlier as award had not come.
Senior advocate Goutam Banerjee, appearing for Antrix, contended that the court did not have the jurisdiction to hear the plea as the contract was executed in Bangalore and both the companies were also based there.