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The judge in the composition of judge L. Nageswara Rao and S. Ravindra Bhatt on Thursday set aside a Delhi High Court order setting aside a 2017 arbitration award in favor of Delhi Airport Metro Express Pvt Ltd (DAMEPL) – a special purpose vehicle set up by Reliance Energi (later renamed Reliance Infrastructure) and Spanish company Construcciones Aukiliar de Ferrocarriles to build and operate the Delhi Metro Airport Express Line.
The amount includes around Rs 2,800 crore as principal prize plus interest.
The DMRC invoked the arbitration clause against DAMEPL after the latter in 2012 terminated the contract signed in 2008 for the construction, operation and maintenance of the Airport Express Line. Both parties then filed lawsuits and counterclaims against each other. Following differences, Reliance Energy suspended the airport line on 30 June 2013 and handed it over to DMRC the next day.
Reliance Infra won the arbitration proceedings on May 11, 2017 and received a repayment of Rs 2,782.33 crore, but it was reversed by a division bench of the Delhi High Court after a single judge refused to interfere in the decision.
Reliance Infra appealed to the apex court against the department’s decision and won. “The appeal filed by DAMEPL is allowed and the division judgment of the High Court is set aside. The appeal… filed by DMRC is dismissed,” the apex court said in its order.
In a statement, Reliance Infrastructure said the proceeds will be used to reduce debt. “The Supreme Court has upheld the arbitration award in favor of Reliance Infrastructure Limited’s subsidiary DAMEPL… Proceeds from the arbitration award will be used for debt reduction,” it said.
DMRC, in a statement issued through its executive director of corporate communications, Anuj Dayal, said it was “analyzing the verdict for future course of action”. DAMEPL has demanded Rs 3,470 crore as compensation with interest from DRMC.
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