Air India Limited is seeking to quash a case filed by Dewas Multimedia Pvt. In a US court, arbitration blocks demands on the recovery of awards, arguing a recent change in carrier’s ownership.
Dewas seeks $1.2 billion from the Indian government after winning three international arbitration awards over a canceled telecom deal with a state-run company. The company is seeking confiscation of overseas assets of the formerly state-owned flag carrier, which was handed over to Indian conglomerate Tata Sons Pvt. on Thursday, saying that the national carrier is an alter ego of the Indian government.
Air India’s filing in a US court took place on Thursday, the same day a new management took over, ending years of taxpayer-funded bailouts for the airline, and successfully executing the first major privatization in nearly two decades to Prime Minister Narendra Modi. helped to do. Finance Minister Nirmala Sitharaman had said last week that the country would start the process of shutting down Dewas.
The district court in New York may dismiss and dispose of Dewas’s case solely on the basis of Air India’s request, or if the demand is denied, it may decide the remaining issues in the case, according to a filing filed by the airline. can identify.
Representatives for Dewas and Air India did not immediately respond to emails seeking comment.
In an interview ahead of Air India’s latest filing, Dewas’ lawyers said they would continue their efforts to recover arbitration award money from Indian government assets in several countries. Dewas shareholders’ counsel Matthew McGill said the company would initiate a fresh arbitration against the Indian government.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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