Satyam takes former client Upaid to court

Mahindra Satyam (formerly Satyam Computer) on Tuesday said it had filed a lawsuit in a New York court against its former U.K. client Upaid, seeking to make it solely responsible for any tax liability arising from an out-of-court settlement reached by them. In December last, Satyam had offered to settle all disputes with Upaid Systems over licence of intellectual property, among others, by paying $70 million to the U.K.-based provider of mobile and online payment transaction services.

Mahindra Satyam sources said there was a stand-off between Satyam and Upaid over the tax liabilities. In a regulatory filing on the Bombay Stock Exchange, Mahindra Satyam said: “In the lawsuit filed on February 22, 2010, Satyam is asking the New York Court for a declaration that the settlement agreement is valid and enforceable... Upaid is solely responsible for any tax liability arising from that $70 million settlement payment, including responsibility for complying with tax deduction requirements.”

It further said to the extent there is any tax deduction required, it shall be deducted from the $70 million, plus interest, now in the escrow account that would otherwise be payable to Upaid. — PTI

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Printable version | Jun 14, 2021 10:47:57 PM |

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