HYDERABAD, INDIA: Satyam Computer Services Ltd filed a lawsuit against UK-based Upaid Systems Ltd in a New York state court seeking to declare a settlement pact between the companies valid and enforceable, according to a regulatory filing.

Satyam, re-branded as Mahindra Satyam, was bought by Tech Mahindra in April last year after being hit by India's biggest corporate fraud.

Satyam, which deposited $70 million as settlement amount into an escrow account as part of the Upaid deal, also sought court approval for the disbursement of funds from the account as per Indian laws.

Satyam said it was also seeking declaration that Upaid, a provider of solutions for payments via mobile phones, be solely responsible for any tax liability, and that Satyam has discharged its obligations under the agreement and shall owe nothing further to Upaid.

The settlement requires Upaid to give Satyam a worldwide royalty-free licence on its patents, and provides for the dismissal of all pending actions including the litigation between the companies pending in the U.S. court.

Satyam is also seeking compensatory damages from Upaid in "an amount to be determined at trial," the filing said.