Mahindra Satyam wins ruling in Upaid settlement

IT services firm Mahindra Satyam said it had won a New York court ruling to withhold taxes from a 70 million settlement payment to Britain-based Upaid Systems Ltd.

The Supreme Court of New York denied a motion brought by Upaid that it was entitled to receive the full amount,and ruled it must co-operate with the escrow agent,IDBI Bank,to allow Mahindra Satyam to hold back any applicable taxes,the Indian company said in a notice to the stock exchange.

Mahindra Satyam,formerly Satyam Computer Services,had agreed last December to pay 70 million to Upaid in a patent suit settlement.

In February,it had filed the lawsuit in New York against Upaid,which facilitates payments via mobile phones,seeking to declare the settlement pact between the companies valid and enforceable.