Delhi HC directs DMRC to make balance payment to Reliance Infra in 4 weeks
Sep 08, 2022
New Delhi [India], September 8 : The Delhi High Court has directed the Delhi Metro Rail Corporation (DMRC) to pay the outstanding award amount to Reliance Infrastructure subsidiary's Delhi Airport Metro Express Private Limited (DAMEPL) within four weeks.
The Bench of Justice V Kameshwar Rao in an order passed on September 6 said, "I deem it appropriate to direct that the balance payment in terms of the award shall be made within a period of four weeks."
While posting the matter for October 10, the bench made clear that if the amount was not paid within four weeks, the court shall be constrained to call the appearance of the Managing Director of the DMRC before it.
In March this year, the Delhi HC in a judgment said, "Out of the funds available under the head Total DMRC Funds of Rs 1,452.10 cores, judgment debtor is directed to keep aside amount of Rs 628 crores (Rs 514+ Rs 114 crores) towards statutory expenses as mentioned herein above and from the remaining amount, part payment of decreetal amount be made within two weeks."
"For the remaining outstanding amount, judgment debtor is directed to make the payments in two equal instalments within two months. The first instalment shall be paid on or before 30.04.2022 and the second instalment shall be made on or before 31.05.2022," said the judgement.
Court further added that, 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 14, 2022 after seeking permission of the Central Government, if necessary, or raise loans to satisfy the award.
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 Rs 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 that 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 for 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 court's directions to DMRC for honouring the SC order and pay Rs 7,200 crores to the company. DMRC, out of Rs 7200 crores, has so far paid only Rs 1000 crores.
The Supreme Court, on September 7, 2021, had upheld the arbitration award of Rs 7,200 crores in favour of DAMEPL.
In 2008, DAMEPL had 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.
