In a victory for Software maker Ebix Inc, the US state Delaware’s Justices on April 11 upheld the ruling of a lower court that had ruled against India-based travel agency platform Yatra.
The lower court had held that Yatra, having voluntarily terminated its merger agreement with Ebix, had forfeited its right to sue for damages for breach of contract. Yatra had appealed against the ruling and urged the Justices for a reversal of the ruling.
The ruling, however, was affirmed by the Delaware top court in a big relief for Ebix.
The courts below had found that the terms of the merger agreement between Ebix and Yatra stipulated that Yatra could either terminate the merger deal or sue Ebix for breach of contract, but not exercise both the options. With Yatra choosing to terminate the agreement, its right to sue for damages was waived.
This reasoning was given approval by the Delaware top court.
Yatra and Ebix had begun their talks for the former’s acquisition by the latter for a consideration of around $338 million and signed an agreement for the merger in 2019. In the following year, Yatra accused Ebix of breach of contract and terminated the agreement.
The Indian travel company took Ebix to court seeking damages for breach of contract.
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