NEW DELHI, INDIA: The Supreme Court issued a notice to Satyam Computer Services (now renamed Mahindra Satyam), on an appeal filed by a US, Michigan-based firm which challenged an international arbitration award granted to the scam-hit IT company by Andhra Pradesh High Court prior to its founder’s fraud admission.
In its plea, Venture Global Engineering (VGE) said that Satyam founder Ramalinga Raju’s admission of fraud and subsequent developments cannot be used to challenge a foreign arbitral award after three years.
Raju is facing many cases in India following his admission of the Rs 7,080-crore fraud.
A bench comprising justices P Sathasivam and HL Dattu sought response from Satyam as to why the case could not be reopened after Raju's confessions. The court asked the parties to submit their response by July 13, the next date of hearing.
The Michigan-based petitioner had an equal joint venture with Satyam. Later on a dispute arose between them regarding shareholding agreement which was referred for an international arbitration.
Though Venture Global challenged the arbitral award in a Secunderabad court, which allowed its plea to take on record all subsequent events following Raju's confession of fraud, Satyam contested the trial court in the AP High Court which set aside lower court order.
VGE counsel K K Venugopal argued that the arbitral award was in conflict with the public policy of the country.