DELHI HC DIRECTED DELHI METRO CORPORATION TO PAY ARBITRATION AWARD TO DAMEPL

The Delhi High Court directed the Delhi Metro Rail Corporation (DMRC) to pay the award passed by an arbitral tribunal to Anil Ambani-owned Delhi Airport Metro Express Private Limited (DAMEPL). 

The HC was hearing an execution petition by Reliance Infrastructure’s subsidiary DAMEPL, seeking execution of the arbitral award of ₹8000 crores. The award arose out of an agreement signed in 2008 between the DMRC and DAMEPL to develop and operate the orange line of the Delhi Metro that links Indira Gandhi International Airport1 Terminal-3 to Dwarka Sector-21. 

The Central government and DMRC said that the Delhi Metro does not have sufficient funds to pay such an amount.

Solicitor General Tushar Mehta suggested that the government should be allowed to deal directly with the banks and through which the money can be paid. DAMEPL refused the suggestion by stating that it needs the entire amount in an escrow account.DAMEPL further said that the Delhi HC and the SC had upheld the award.

To which the respondents said that although the judgment says that DAMEPL has claimed total arbitral award along with all the interest amounts to over ₹8000 crores, the same has been disputed by the DMRC, which has paid ₹1678 crore till now. 

The HC said that the award dated May 11, 2017, has reached finality and therefore, cannot be allowed to remain as a paper award. The Court directed DMRC to make part payment from DMRC’s ‘Total DMRC Funds’ within two weeks from the order and the remaining amounts to be paid in the next two months in two equal installments.