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Awaiting a 'serious' settlement offer from Satyam: Upaid

Published on Fri, Apr 17, 2009 at 15:43 | Source : CNBC-TV18

Updated at Sat, Apr 18, 2009 at 10:25

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The two-year long litigation between Satyam and Upaid and the possible liabilities is definitely a cause of concern for Satyam's new owners Tech Mahindra. But, there is a strong possibility of an out of court settlement. Upaid is looking at claiming damages in excess of USD 1 billion from the US court on May 1.

Simon Joyce, the Chief Executive Officer of Upaid, has said fraud-hit Satyam Computer Services has not yet made "any serious offer" of an out-of-court settlement. Upaid is involved in a legal battle with Satyam and has accused it of forgery and fraud. The Upaid-Satyam trial begins in a Texas court on June 1.

"If Satyam wishes to settle, then it is necessary for a serious offer of settlement without delay," Joyce has been quoted as saying. "We are withing 45 days of the trail and it might be too late [by the time Satyam gives a settlement offer]."

Upaid, Joyce said, was looking at claiming damages in excess of USD 1 billion from the US court. "The integrity of ownership of intellectual property created by Satyam is an area of concern," he said. "The same concern applies to many customers of Satyam."

Also read: Satyam withdraws suit against Upaid

Here is a verbatim transcript of Ashwin Mohan's comments on CNBC-TV18. Also watch the accompanying video.

Keeping aside the various class action lawsuits that are pending against Satyam in the US, the Satyam-Upaid case is definitely a legal concern for Tech Mahindra today. When last contacted, the Satyam board maintained they had conducted preliminary discussions on the possibility of an out of court settlement with Upaid. But Simon Joyce, CEO of Upaid said that no serious offer regarding an out of court settlement has been made by Satyam. He also said that if Satyam wishes to settle then it is necessary for a serious offer of settlement made without any delay.

They are within 45 days of trial and the Satyam-Upaid case will come for a hearing on June 1, 2009 at a Texas Court. So Joyce clearly pointed out that since we are within 45 days of trial that it might be too late for an offer or settlement.

He said that Upaid is looking at claim to damages in excess of USD 1 billion from the US Courts on May.

He also pointed out a significant area of legal concern, he said that the integrity of the ownership of the intellectual property which was created by Satyam is an area of concern for Upaid and also an area of concern interestingly for other customers of Satyam. So clearly Simon Joyce saying that the ball is in the court of Satyam.

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