Delhi High Court grants DMRC more time to come with modalities for paying arbitral award to DAMEPL

New Delhi [India], October 10 (ANI): The Delhi High Court on Monday granted two more weeks to Delhi Metro Rail Corporation (DMRC) to come up with modalities for payment of the arbitral award to the Reliance Infrastructure subsidiary’s Delhi Airport Metro Express Private Limited (DAMEPL).
The DMRC on Monday, in its short affidavit, informed the court that it has written to the Union Ministry of Housing and Urban Affairs and to the Government of NCT Delhi, requesting an infusion of funds as Grant/Equity/Interest-free Subordinate Debt to DMRC, for payment of balance Arbitral Award amount.
“It is expected that both the Governments will respond in terms of their respective liabilities under the Metro Policy, 2017, consequently any further directions in regard to the execution of the Award will have to necessarily await the deliberations by both the Governments,” stated DMRC affidavit.
The Attorney General of India R Venkatramani appeared for DMRC in Delhi High Court and sought more time for DMRC. AG informed the court that if DMRC were to raise funds through loans from banks, it would fall into a ‘debt trap’.
Noting down the submissions, the Bench of Justice V Kameshwar Rao granted two more week time to DMRC and fixed the date of October 31, 2022, for the next hearing.
The same bench on the last date of the hearing made clear that if the amount is not paid within time, the Court shall be constrained to call the appearance of the Managing Director of the DMRC before this Court.
Earlier in March this year, the Delhi HC had passed a Judgement and said, “Out of the funds available under the head total DMRC Funds of Rupees 1,452.10 cores, the judgment debtor is directed to keep aside an amount of Rupees 628 crores (Rs.514+ Rs.114 crores) towards statutory expenses as mentioned herein above and from the remaining amount, part payment of decretal amount be made within two weeks.”
“For the remaining outstanding amount, the judgment debtor is directed to make the payments in two equal instalments within two months. The first instalment shall be paid on or before April 30, 2022, and the second instalment shall be made on or before May 31, 2022,” said the judgement.
“The award dated May 11, 2017, has attained finality and cannot be allowed to remain as a paper award, therefore, the judgment debtor is duty bound to either divert its finds shown to be available in different heads mentioned in the affidavit of February 2, 2022, after seeking permission of the Central Government, if necessary or raise loans to satisfy the award,” the judgment further said.
The Delhi High Court earlier had directed DMRC to provide details of funds in its bank account in connection with a Reliance Infrastructure subsidiary’s (DAMEPL) plea for the execution of an arbitral award against it.
The Reliance Infrastructure subsidiary Delhi Airport Metro Express Pvt Ltd (DAMEPL) had filed an application requesting Delhi High Court to direct Delhi Metro Rail Corporation Limited (DMRC) to deposit Rupees 6,208 crores available in its various bank accounts into the project escrow account without any delay.
DAMEPL, in its application, had rejected any out-of-court negotiations/ settlement or assignment of debt to the DMRC.
DAMEPL plea states, “The Decree Holder is not agreeable to settling the matter out of the Court. Accordingly, no alternate proposal by DMRC is acceptable to Decree Holder and it presses for the execution on merits at the earliest.”
The plea further stated that the delay in payment by DMRC is causing immense prejudice to DAMEPL and its Promoter, Reliance Infrastructure Limited. In case the reliefs as sought are not granted, the Decree Holder shall suffer irreparable loss and injury.
Earlier, DAMEPL had filed an execution petition in the Delhi HC on September 12, 2021, seeking the court’s directions to DMRC to honour the SC order and pay Rupees 7,200 crores to the company. DMRC, out of Rupees 7200 crores, has so far paid only Rupees 1000 crores.
The Supreme Court (SC), on September 7, 2021, upheld the arbitration award of Rupees 7,200 crores in favour of DAMEPL.
In 2008, DAMEPL entered into a contract with DMRC for running the airport metro line till 2038. As disputes arose between the parties, DAMEPL stopped operating the metro on the airport line and invoked the arbitration clause against DMRC alleging violation of contract, and sought a termination fee. (ANI)