Satyam settles up 2 pc on favourable judgement from NY court

MUMBAI: Mahindra Satyam shares settled up over 2 per cent on the BSE, a day after the company received a favourable judgement from a New York court on its lawsuit against UK-based Upaid Systems.

Shares of Mahindra Satyam (earlier known as Satyam Computers) closed at Rs 85.40, up 2.34 per cent on the Bombay Stock Exchange. During the session, the stock climbed 5.45 per cent to touch an intra-day high of Rs 88.

Mahindra Satyam had filed a lawsuit in a New York court against Upaid, seeking enforcement of a legal settlement agreement signed between the two companies in December, 2009.

At issue is the tax liability on the $ 70 mn settlement amount paid by Satyam, which the Indian IT major claims is Upaid's responsibility under the agreement.

On the National Stock Exchange, the stock closed up 2.39 per cent at Rs 85.55.

In December, 2009, Satyam had agreed to pay $ 70 mn to settle all outstanding legal disputes with Upaid.

As part of the December agreement, Satyam entered into an escrow agreement with Upaid and deposited the settlement amount of $ 70 mn into an escrow account.