Anil Ambani’s Reliance Infrastructure’s metro arm
The Supreme Court reversed the arbitral award favoring Anil Ambani’s Reliance Infrastructure’s metro arm, DAMEPL, citing patent illegality. It upheld the High Court’s division bench decision, allowing DMRC’s curative petition and ordering refunds of deposited amounts.
The Supreme Court relieved DMRC by overturning the Rs 8,000 crore arbitral award favoring Anil Ambani’s Reliance Infrastructure’s metro arm, DAMEPL.
The SC affirmed the High Court’s division bench ruling, stating the arbitral award against DMRC suffered patent illegality.
A bench led by Chief Justice of India DY Chandrachud stated that DMRC’s deposited amounts shall be refunded, including any payments made by the petitioner under coercive action.
The SC reserved the verdict, permitting DMRC’s curative petition. “However, using curative jurisdiction shouldn’t open floodgates. In this case, Supreme Court interference resulted in grave miscarriage of justice,” stated the bench.
In February, the SC bench had reserved judgment on DMRC’s curative plea challenging the dismissal of its review petition against the Rs 8,000 crore arbitral award favoring DAMEPL.
DMRC versus DAMEPL saga
In 2008, DMRC and DAMEPL signed an agreement for the Airport Metro Express Line from New Delhi Railway Station to Sector 21 Dwarka for 30 years. DMRC handled civil structures while DAMEPL managed system works. DAMEPL halted operations due to viaduct defects, notifying DMRC for repairs.
Subsequently, DMRC appealed to Delhi High Court, with a single bench dismissing the petition initially. However, the division bench later overturned the arbitral tribunal’s order, deeming it ‘contrary to India’s public policy.
Consequently, Anil Ambani’s company’s arm appealed to the Supreme Court. In 2021, the SC affirmed that arbitral tribunal awards are not subject to challenge and upheld the award.
Following this ruling, DMRC filed a curative petition, which the apex court granted on April 10, 2024.
The initial arbitral award grew to Rs 7,045.41 crore by the end of 2021, when DAMEPL sought enforcement from Delhi HC based on the 2017 order. By then, DMRC had paid Rs 1,000 crore and informed the court of its inability to pay the full amount, suggesting the Delhi government and the Housing and Urban Affairs Ministry bear the responsibility.
Currently, the amount has risen to Rs 8,000 crore.
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