cc/devas (Mauritius) Ltd v. Republic of India

CourtDistrict Court, District of Columbia
DecidedMarch 24, 2022
DocketCivil Action No. 2021-0106
StatusPublished

This text of cc/devas (Mauritius) Ltd v. Republic of India (cc/devas (Mauritius) Ltd v. Republic of India) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
cc/devas (Mauritius) Ltd v. Republic of India, (D.D.C. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

CC/DEVAS (MAURITIUS) LTD., et al.,

Petitioners,

v. Case No. 1:21-cv-106-RCL

REPUBLIC OF INDIA,

Respondent.

MEMORANDUM OPINION

Petitioners CC/Devas (Mauritius) Ltd. ("CC/Devas"), Telcom Devas Mauritius Limited

("Telcom Devas"), and Devas Employees Mauritius Private Limited ("DEMPL") have petitioned

this Court to confirm and enforce a roughly $111.3 million arbitral award against the respondent,

the Republic of India ("India"). See generally Pet., ECF No. 1. At the same time, India has filed

lawsuits in the Netherlands to set aside this award. See Claassens & Verkerk Deel. ,r,r 3-5, ECF No. 35. India moved to dismiss this petition or, alternatively, to stay these proceedings until

the conclusion of the Dutch set-aside proceedings. Mot. to Dismiss, ECF No. 15; Mot. to Stay,

ECF No. 14. Petitioners challenged both motions in separate responses. See Pet'rs' Resp. to

Resp't's Mot. to Stay ("Stay Resp."), ECF No. 24; Pet'rs' Resp. to Resp't's Mot. to Dismiss

("MTD Resp."), ECF No. 23. India filed separate replies for both motions. Reply Mem. in Supp.

of Mot. to Stay ("Stay Reply"), ECF No. 31; Reply Mem. in Supp. of Mot. to Dismiss ("MTD

Reply"), ECF No. 32. After considering the parties' briefing, relevant exhibits, and applicable • .•-: • •.., __ . . . • ,. ··, . . • • , , , , • • .·,. , ..•. ·,.,. • • , . •,«,a,,t,,,¥

law, the Court finds that India has demonstrated a pressing need for a temporary stay. India's

motion to stay will be GRANTED.

1 I. BACKGROUND This case involves a contract dispute between Devas Multimedia Private Limited

("Devas") and Antrix Corporation Limited ("Antrix"), two Indian companies. Devas sought to

provide broadband wireless access and audiovisual services across India's rural areas through

satellite communications. Pet. ,r,r 2-4. In January 2005, Devas entered an agreement with Antrix

(the "Devas-Antrix Agreement" or the "Agreement") to pursue this goal. Id. ,r,r 20, 22. Antrix is

wholly owned by the Indian government-it serves as the "marketing arm" of the Indian

Department of Space ("DOS") and as a commercial entity within the Indian Space Research

Organization ("ISRO"). Id. ,r,r 20-21. Antrix agreed to build, operate, and launch two ISRO

satellites and to lease Devas a portion of the "S-band" of the electromagnetic spectrum to use for

broadcasting. Id. ,r 22. Between 2005 and 2011, Devas "assembled a world class team of experts"

in satellite communications and conducted trials in India, Germany, and China. Id. ,r 4. Petitioners

in this action-CC/Devas, Telcom Devas, and DEMPL 1-collectively injected millions of dollars

into Devas during this period to assist with satellite reservation fees and other business expenses.

Id. ,r 23. But the momentum behind the Devas-Antrix Agreement came to a screeching halt. In

February 2011, the Indian Cabinet Committee on Security ("CCS") announced the termination of

the Agreement. Id. ,r 32. The CCS reasoned that the Indian government could no longer lease

S-band frequencies to Devas because of "increased demand" in that range "for national needs."

Id. Antd~ terrI1inate~. th~ A.:~eeme.n.!,~ few days later. Id. Without the Agreement, Devas's

business and petitioners' investments "[were] completely destroyed." Id. ,r 33.

1 Each petitioner is an entity incorporated in Mauritius, though CC/Devas and Telcom Devas are affiliated with two

American-based venture-capital firms. Pet. ,r,r 14, 34.

2 Facing the loss of their investments, petitioners commenced international arbitration. They

alleged violations of a bilateral investment treaty between Mauritius and India (the "Mauritus-

India Treaty"). 2 On July 25, 2016, a three-member tribunal of the Permanent Court of Arbitration

in The Hague (the "Tribunal") issued a decision on the merits of petitioners' arbitration (the

"Merits Award"). Merits Award, ECF No. 1-5. The Tribunal held that India breached the

Mauritius-India Treaty by annulling the Devas-Antrix Agreement. Id. ,r 48. Next came the

quantum of damages. The parties submitted additional briefing and evidence on damages during

2017 and 2018, culminating in a days-long hearing before the Tribunal. Id. ,r,r 51-52. On October

13, 2020, the Tribunal issued a decision (the "Quantum Award") finding that petitioners were

entitled to $111,296,000 in damages, pre-judgment interest, post-judgment interest, and attorneys'

fees. Id. ,r,r 5, 53-55; Quantum Award, ECF No. 1-3. 3 But petitioners' successes before the Tribunal did not end this controversy. India's

challenge to the Merits Award-in which India is requesting a complete set-aside-is currently on

appeal to the Dutch Supreme Court. Claassens & Verkerk Deel. ,r 5. And India has challenged

the Quantum Award by filing suit in The Hague District Court. Id. ,r 4. The Court is not aware of

a final decision in either Dutch proceeding. Devas itself is now subject to winding-up proceedings

and litigation in India about allegedly fraudulent conduct surrounding the Devas-Antrix

2See Agreement Between the Republic of India and the Republic of Mauritius for the Promotion and Reciprocal Protection oflnvestments, in Investment Promotion and Protection Treaties: India/Mauritius (Int'! Ctr. for Settlement oflnvestment Disps. 2010), ECF No. 1-8. 3 Separately; Devas- i~elf commenced arbitration against Antrix under:-the arbitration clause in their Agreement. Pet. ,r 66. The International Chamber of Commerce ("ICC") heard this arbitration and, -on September 14, 2015, awarded Devas $562,500,000 in damages for breach of contract (the "ICC Award"). Id The ICC Award did not affect the Tribunal's holding toward petitioners, though the Tribunal mandated that the petitioners make efforts to avoid receiving double compensation. Id (quoting Merits Award ,r,r 166; Quantum Award ,r 663(k)). Devas then filed suit in the Western District of Washington to enforce the ICC Award. Devas Multimedia Priv. Ltd v. Antrix Corp. Ltd, No. 2:18-cv-1360 {TSZ), 2020 WL 5569782 (W.D. Wash. Sept. 17, 2020). In November 2020, that court entered judgment against Antrix for roughly $1.29 billion. Judgment, id, ECF No. 52. That decision is on appeal at the Ninth Circuit. Devas Multimedia Priv. Ltd. v. Antrix Corp. Ltd, No. 20-36024 (9th Cir. Feb. 16, 2022).

3 Agreement. See Mot. to Stay 13-17; see generally Dutt Deel., ECF No. 23-29; Jayasimha Deel.,

ECFNo. 36.

These pending lawsuits have not stopped petitioners from trying to enforce their initial

victory. They have filed lawsuits in Australia, Belgium, England, France, Luxembourg, and the

Southern District of New York praying for confirmation of the Merits and Quantum Awards.

See Compl. if 41, CC/Devas (Mauritius) Ltd. v. Air India, Ltd., No. I :21-cv-5601 (PGG) (S.D.N.Y.

June 28, 2021), ECF No. 1. 4 On January 13, 2021, that worldwide campaign reached the District

of Columbia. See Pet. ,r 9. After several months' delay (while petitioners served India with

process), India filed a motion to stay and a motion to dismiss. See Mot. to Stay; Mot. to Dismiss.

These motions are now ripe.

II. LEGAL STANDARD

Part of the Federal Arbitration Act ("FAA"), 9 U.S.C. §§ 201-08, codifies the Convention

on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York Convention," or

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