SC slams DMRC over non-payment of Rs 4,500 crore to Reliance Infra

There are public speeches on making India an international arbitration hub but the court's order not enforced, says bench

The Supreme Court on Monday warned the Delhi Metro Rail Corporation (DMRC) would be in contempt if it doesn’t completely pay the Rs 7,200 crore awarded in arbitration to an arm of Reliance Infrastructure.

Reliance Infra moved the Supreme Court on December 2 against DMRC, seeking payment of Rs 4,500 crore of dues from the total arbitral award to Delhi Airport Metro Express Pvt Ltd (DAMEPL). The court issued a notice to DMRC and sought a reply by December 12.

Justice B R Gavai on Monday told Attorney General R Venkataramani, who represented DMRC, there are public speeches on making India an international arbitration hub but the court’s order has not been enforced. “The (arbitration) award upheld by this court has to be followed,” he said.

Venkataramani told the court that Rs 2,700 crore has been paid to DAMEPL. Senior advocate Harish Salve, who appeared for DAMEPL, said about Rs 4,500 crore remains unpaid.

“Mr Attorney General, this is contemptuous. The award is upheld by the top court. It is not expected from the Attorney General. Please do not do it again,” said Gavai.

“Should we implead the Union of India?” the bench asked. Venkataramani then has asked for four more weeks to make the payment.

The matter will be taken up again on Wednesday. The Supreme Court on September 9, 2021 upheld a 2017 arbitration award of roughly Rs 4,500 crore, which was enforceable against the DMRC. It said the hearing on the execution application cannot be postponed any longer because it is injurious to both parties interests.