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The Delhi High Court Friday directed the Centre and the city government to attend to the request of DMRC for extension of sovereign guarantees or subordinate debt to enable it to make payment of dues of an arbitral award passed in favour of Reliance Infrastructure-owned Delhi Airport Metro Express Private Limited.
The high court said the decision has to be taken by the Union Ministry of Housing and Urban Affairs and the Delhi government within two weeks and if the permission is accorded to the DMRC, it will deposit the entire amount payable under the award along with up-to-date interest within a period of one month.
"If the Union ministry or Delhi government decline the request for providing sovereign guarantees or subordinate debt, the Union ministry shall forthwith or at the end of two weeks revert and repatriate all monies received by it from DMRC post March 10, 2022 so as to ensure that the credit balance of the DMRC, total project and total other funds reflects the balance as it existed on March 10, 2022," Justice Yashwant Varma said while reading out the operative portion of the judgement.
The high court's verdict came on an execution petition filed by DAMEPL against the Delhi Metro Rail Corporation over payment of dues of an arbitral award passed in its favour. The detailed judgement will be made available later.
An arbitral tribunal had in May 2017 ruled in favour of DAMEPL, which had pulled out of running the Airport Express metro line over safety issues, and accepted its claim that running the operations on the line was not viable due to structural defects in the viaduct through which the train would pass.
Earlier, the court had noted that the total amount of the award with interest till February 14, 2022 was Rs 8,009.38 crore. Of this, a sum of Rs 1,678.42 crore has been paid by DMRC and an amount of Rs 6,330.96 crore is still due.
DMRC took a stand that it has no funds and despite efforts, the two stakeholders -- the Centre and the Delhi government -- have been unable to arrive at a consensus on the ways and means by which the amount payable under the award may be liquidated.
The high court, in its verdict, said when it receives the money from the Union ministry, the DMRC will transfer the amount to the escrow account equal to the total amount payable in terms of the award along with interest.
"In case of a failure on the part of the parties to proceed in terms of the above directions, the entire amount standing to the credit of DMRC, total project and total other funds as of today shall stand attached forthwith without reference to court," the judge made clear.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Fri, March 17 2023. 15:55 IST
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