Mahindra Satyam (formerly Satyam Computer) today said it has filed a lawsuit in a New York court against its former UK 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 year,Satyam had offered to settle all disputes with Upaid Systems over licence of intellectual property,among others,by paying USD 70 million to the UK- based provider of mobile and online payment-transaction services. Mahindra Satyam sources said there is a stand-off between Satyam and Upaid over the tax liabilities. In a regulatory filing on BSE,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 USD 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 USD 70 million,plus interest,currently in the escrow account that would otherwise be payable to Upaid.
