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Reliance Infra moved the Supreme Court on Friday against the Delhi Metro Rail Corporation (DMRC), seeking payment of Rs 4,500 crore in arbitration dues.
The court issued a notice to the DMRC in this regard and sought a reply by December 12.
In the same matter, the Delhi High Court also gave DMRC till December 12 to come up with a plan to pay the balance of the arbitration award in favor of Delhi Airport Metro Express Pvt Ltd (DAMEPL).
DAMEPL is the infrastructure arm of Reliance.
On 9 September 2021, the Supreme Court upheld DAMEPL’s 2017 arbitration award of approximately Rs 4,500 crore, which was enforceable against DMRC. Justices L Nageswara Rao and BR Gavai said the hearing of the execution petition cannot be delayed any longer as it is detrimental to the interests of both parties.
Subsequently, the matter was heard by the Delhi High Court (HC).
Reliance Infra claimed that despite the SC upholding the arbitration award, DMRC defaulted on the dues. The SC agreed to hear this request.
The DMRC filed an affidavit on November 17 before the HC stating that the Delhi government will consider the decision to pay half of the allotted amounts by taking the matter before the cabinet, which may take time.
The statement also said, “The Union Ministry of Housing and Urban Affairs has submitted that DMRC’s request to bear 50 per cent of the total arbitration award will be fully examined by the Government of India for an informed decision, being a shareholder of DMRC.”
DAMEPL’s senior counsel, Jaideep Gupta, told the HC hearing on November 18 that the affidavit leaves it open-ended for the court to take an appropriate decision “after the outcome of the aforesaid consideration/inquiry and approval of DMRC’s claim by both the owners partners of DMRC ie Union Ministry of Housing and Urban Affairs and Government of NCT of Delhi are placed before this Hon’ble Court”.
The entire arbitration award of Rs 4,500 crore was to be paid to DAMEPL by October 4, failing which the court had said in an earlier hearing that it would summon the DMRC MD.
Gupta stressed that DMRC’s affidavit was a step back as the Court had already ordered it on March 10, June 20 and September 6 to pay the entire debt within the specified time, which DMRC failed to do each time. “So, the Court should now summon the presence of MD DMRC to give an undertaking to pay immediately,” he told the court today.
Responding to this, Attorney General of India R Venkataramani, representing the DMRC, asked Justice V Kameswara Rao why an MD had to be present if he was appearing in the case.
He asked the court to adjourn the case till December 12 so that the Delhi government’s decision is known and the Union of India also takes a stand on the matter by that date. “The Delhi MCD elections are here. We need more time,” he said. The court granted his request.
Earlier in March 2022, the Delhi High Court, after hearing DAMEPL’s enforcement plea, passed an order on March 10, 2022, directing DMRC to pay the entire amount in two equal installments by April 30 and 31 May 2022. But DMRC sought an extension to pay the amount.
DAMEPL again approached the Delhi HC to enforce the March 10 order. The court then passed an order on June 20 directing DMRC to make the full payment by August 5, 2022. DMRC again sought an extension.
DMRC owed close to Rs 7,100 crore, of which it had already paid Rs 2,600 crore as of September 6. It now owes an outstanding amount of 4,500 crores to DAMEPL.
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