US Court Upholds $562.5M Devas Arbitral Award Against India's Antrix

The United States Court of Appeals for the Ninth Circuit has upheld the confirmation of a $562.5 million arbitral award obtained by Devas Multimedia against Antrix Corporation, the commercial arm of the Indian Space Research Organisation (ISRO).

This ruling is significant as it confirms American courts' jurisdiction to enforce the award against Antrix, a corporation wholly owned by the Indian government. The confirmation of this award now makes it worth more than $2 billion with accrued interest. This development has important implications for international arbitration and enforcement in the United States.

The dispute arose from a 2005 agreement between Devas and Antrix under which Antrix agreed to build, launch, and operate two satellites and lease 70 MHz of India's S-band spectrum to Devas. Antrix terminated the agreement in 2011 after the Indian government decided against providing an S-band orbital slot for commercial activities. Devas then initiated arbitration before the International Chamber of Commerce (ICC), which awarded $562.5 million along with interest.

The relevant statutes and regulations involved include the New York Convention, which governs international arbitration agreements and awards. The Ninth Circuit's ruling is also significant in light of its earlier decision that Antrix lacked sufficient contacts with the United States to be subject to American jurisdiction.

Practitioners should monitor this development as it sets a precedent for the enforcement of arbitral awards against state-owned entities in the United States.