Devas Multimedia’s Investors Can Seize 50% of Air India’s Assets
A Canadian court ruled that Devas Multimedia’s investors can seize half of Air India’s assets held by the International Air Transport Association (IATA).
- There will be no seizure of funds belonging to the Airports Authority of India.
- Court observes that Air India enjoys state immunity as a national carrier.
- The order comes weeks before the Air India takeover by Tata Sons.
In a partial victory for India, a Canadian court ruled that Devas Multimedia’s investors could seize half of Air India’s assets held by the International Air Transport Association (IATA). It has also overturned an order authorising the seizure of funds belonging to the Indian Airports Authority (AAI). Devas shareholders had already acquired authorisation from the Quebec Superior Court on November 24 and December 21 to take assets of AAI and AI held by IATA in conjunction with the two arbitration verdicts it had won for unlawful cancellation of its arrangement with ISRO’s affiliate, Antrix, in 2011. Devas shareholders then moved to freeze $30 million in assets owned by the two companies, including $17.3 million in ticketing revenues earned on behalf of Air India. Both Air India and AAI then filed motions in court to have the court’s orders quashed. On January 8, the Quebec Superior Court denied Air India’s quashing request but altered its previous ruling to limit seizure amounts to 50% of IATA funds. The respite came after Air India stated that its operations would be jeopardised, particularly considering worldwide airline sector disruptions caused by the COVID-19 epidemic. However, the court allowed AAI’s plea to quash the November 24 order, stating that it was an entity of the Indian state that enjoyed state immunity and that the navigational and aerodrome fees were received on behalf of AAI related to sovereign functions rather than commercial functions.
Upcoming Greenfield Airports in India to Cater for the Needs of Growing Air Passenger Traffic
Have a breaking news, inside story, scoop?
Write to us, your anonymity is our priority at news [at] aviationscoop.com/
Want to be featured on Aviationscoop?
Send us your articles, stories, suggestions, feedback at news [at] aviationscoop.com
Latest Flight Review
No Recent Comments....!
- No Most discussed posts - 1 week ago....!
- No Trending posts - 1 weeks ago....!