Canada court: Devas can seize upto half of AI funds with IATA

NEW DELHI: A Canadian court has dismissed Air India’s plea seeking quashing of an order that allowed shareholders of Devas Multimedia Pvt Ltd to seize the airline’s assets. Following this, Devas shareholders said in a statement they can continue to seize upto half of AI funds held at International Air Transport Association (IATA) retrospectively and prospectively.
Comments from AI have been sought following this setback and are awaited. Devas statement says the Canadian court has “maintained AI seizure and dismissed AI’s motion to quash (earlier order). Reduced AI seizure amounts to 50% of the funds held by IATA retrospectively and prospectively. Dismissed IATA motion to quash the AI’s seizure.”
“(The court) granted Airport Authority of India’s (AAI) motion to quash pending service of the proceedings on AAI. In other words, AAI is an agency of the state whereas Air India is not, and as such AAI raised a question of state immunity,” Devas statement said : “The highly detailed and compelling allegations contained in the sworn declarations in support of the two seizures taken, at this juncture, as truthful overwhelmingly satisfy the criterion of the objective fear that the recovery of the amounts due under the treaty awards to plaintiffs would be seriously in peril and jeopardy if the seizures were denied.”