In Brief
Devas Multimedia Private Limited was incorporated in 2004 and entered into an agreement with Antrix Corporation to lease satellite capacity for providing multimedia services. Antrix later terminated the agreement and Devas initiated arbitration, securing substantial awards. However, the CBI filed fraud charges against Devas and its officials. Antrix then sought winding up of Devas under Section 271(c) of the Companies Act, 2013 on fraud grounds. The Supreme Court upheld the winding up order, holding that fraud was established—including misrepresentation about non-existent technology, violation of policy, and fraudulent diversion of funds. The Court rejected all challenges including limitation, estoppel, procedural defects, and locus standi objections, emphasizing that once fraud is proven, all consequent transactions are tainted and the wrongdoer's motives are irrelevant.
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