A US-based firm on Thursday moved the Supreme Court challenging the AP High Court order that has granted relief to the scam-hit Satyam, saying its founder Ramalinga Raju’s admission of fraud and the subsequent developments cannot be used to challenge a foreign arbitral award.
A bench comprising justices P. Sathasivam and H.L Dattu, issued notice to Mahindra Satyam and sought its response and asked all the parties concerned to file their submissions by July 13.
The Michigan, US-based petitioner, Venture Global Engineering, which had an equal JV with Satyam, requested the apex court to set aside the HC order.
The High Court had dismissed its petition seeking permission to file additional written submissions in the wake of Mr Raju’s confession of cooking up the books of the IT firm he founded to the tune of Rs 7,000 crore, on January 7, 2009.
Earlier, allowing a Satyam appeal, the High Court on February 19, 2010 held that the confession made by Mr Raju could not be used by the US-based firm to challenge arbitral award.
Venture Global and Satyam had a 50:50 joint venture Satyam Venture Engineering Services.
But later on a dispute arose between them regarding shareholding agreement which was referred for an international arbitration.
On April 2006, the arbitrator awarded in favour of a Satyam and directed the Michigan-based firm to transfer its entire shareholding in Satyam Venture Engineering in favour of the scam-hit firm. — PTI