If Delhi Airport Metro Express Pvt. Ltd. fails to deposit the amount within 15 days, DMRC will be compelled to file a contempt of court case against it.
Delhi Metro Rail Corporation issued a DMRC final notice to Reliance Infra-led Delhi Airport Metro Express Pvt. Ltd. (DAMEPAL), urging the refund of Rs 2,599 crore within 15 days. Failure to comply will prompt the public sector undertaking to file a contempt of court case against DAMEPAL. According to an exchange filing, DMRC has requested DAMEPAL to deposit Rs 2,599 crore along with interest at the rate of SBI’s Prime Lending Rate +2% within the stated timeframe.
The notice follows a top court ruling that overturned an arbitral award favoring DAMEPAL. The award pertained to a dispute over an agreement for constructing, operating, and maintaining the Delhi Airport Metro Express line between the two parties. DAMEPL terminated the agreement in 2012, alleging that DMRC had not addressed certain structural defects it had identified.
In 2017, an arbitral tribunal deemed the company’s termination of the concession agreement for the Delhi Airport Metro Express Line project four years prior as valid. Consequently, it secured an arbitral award totaling Rs 2,950 crore with interest. According to the notice, DMRC clarified that when the award was initially ruled against it, it had placed Rs 2,599 crore in an escrow account managed by Axis Bank Ltd.
DMRC asserts that the bank holding its deposit must refund the amount, as mandated by the apex court. “Banks are not required to seek permission or authorization from any party to return the deposits to DMRC,” the notice mentions.
DAMEPL is seeking legal counsel and will provide necessary disclosures as required. The financial implications are currently uncertain,” the filing stated. The public transport entity issued the notice approximately one month after the Supreme Court reversed its own ruling from three years ago, exempting DMRC from paying an arbitration award of around Rs 8,000 crore to the subsidiary of the Anil Ambani-led company. On April 10, the apex court overturned its 2021 decision and directed that “any payments made by DMRC as part of coercive action must be refunded, and execution proceedings for the award must be halted,” it noted.
DMRC disbursed Rs 3,300 crore to DAMEPL. “Following the Supreme Court’s verdict, DAMEPL has no entitlement to the deposited amount by DMRC. Banks, as custodians, are obligated to comply with the court’s directive without any authorization. Any delay by banks in fulfilling this obligation would constitute a breach of contract and contempt of court,” stated the letter dated May 20.
Subsequent to the Supreme Court’s ruling, Reliance Infrastructure asserted that it had not been held liable by the court. “Reliance Infrastructure clarifies that the Supreme Court’s Order dated April 10, 2024, does not impose any obligation on the company, and the company has not received any funds from DMRC/DAMEPL pursuant to the arbitration award,” the firm stated in an April 11 filing.
You might also be interested in – Anil Ambani faces a setback as SC cancels Rs 8,000 crore arbitral award favoring Rel Infra arm.
