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Court asks Motorola to deposit $120.5 million
Monday, 03 May 2004, 19:30 IST
MUMBAI: The Bombay High Court has directed US telecom giant Motorola Inc to deposit with it an amount of 
5.5 billion claimed by Iridium India Telecom Ltd in a suit.
A bench comprising judges H.L. Ghokale and R.S. Mohile also directed Delaware-based Motorola "not to repatriate any money it receives in India until such time as the entire amount is deposited".
Iridium India had filed a suit against Motorola in 2002 claiming a refund of its investments along with interest of $30 million. It also claimed 3.77 billion as losses incurred in constructing a gateway in Pune and other "operational costs".
The court noted that $90 million invested by Iridium between 1992 and 1997 appeared "to be have been procured on fraud and misrepresentation".
The court said a 1992 private placement memorandum "appears to have been drawn to give a wrong impression while simultaneously attempting to escape from being treated as a misrepresentation".
Iridium's counsel Mukul Rohatgi and Rohit Kapadia dug into English judgements of 1867 to make out a case as to how Motorola had not revealed "vital information relating to the project".
In its defence, Motorola's counsel Ashok Desai and Apsi Chinoy said: "Motorola is not a fly-by-night company", that Iridium's investments where made with eyes wide open and the investors had full knowledge of the risk involved.
Motorola does not have any assets or bank account in India.
Iridium, the world's first commercial wireless communication and digital technology company, was created and developed by Motorola. Motorola is said to have dues from BPL Mobile, Bharati Cellular, Idea Cellular and BSNL among others.
Motorola said: "The entire issue was of commercial failure and that the divisional bench had no jurisdiction to hear the appeal." It also sought a stay on the court's order and its plea will be heard May 5.
Source: IANS
5.5 billion claimed by Iridium India Telecom Ltd in a suit.
A bench comprising judges H.L. Ghokale and R.S. Mohile also directed Delaware-based Motorola "not to repatriate any money it receives in India until such time as the entire amount is deposited".
Iridium India had filed a suit against Motorola in 2002 claiming a refund of its investments along with interest of $30 million. It also claimed 3.77 billion as losses incurred in constructing a gateway in Pune and other "operational costs".
The court noted that $90 million invested by Iridium between 1992 and 1997 appeared "to be have been procured on fraud and misrepresentation".
The court said a 1992 private placement memorandum "appears to have been drawn to give a wrong impression while simultaneously attempting to escape from being treated as a misrepresentation".
Iridium's counsel Mukul Rohatgi and Rohit Kapadia dug into English judgements of 1867 to make out a case as to how Motorola had not revealed "vital information relating to the project".
In its defence, Motorola's counsel Ashok Desai and Apsi Chinoy said: "Motorola is not a fly-by-night company", that Iridium's investments where made with eyes wide open and the investors had full knowledge of the risk involved.
Motorola does not have any assets or bank account in India.
Iridium, the world's first commercial wireless communication and digital technology company, was created and developed by Motorola. Motorola is said to have dues from BPL Mobile, Bharati Cellular, Idea Cellular and BSNL among others.
Motorola said: "The entire issue was of commercial failure and that the divisional bench had no jurisdiction to hear the appeal." It also sought a stay on the court's order and its plea will be heard May 5.
Source: IANS