Delhi Metro Rail Corporation (DMRC) has disputed the amount payable in the arbitration dispute with Reliance Infra. Presenting his case to the Delhi High Court, DMRC argued that the amount owed is Rs 5,000 crore compared to Reliance Infra’s claim of Rs 7,100 crore. However, he agreed to file Rs 1 000 crore in an escrow account within the next 48 hours.
The enforcement petition was filed by Delhi Airport Metro Express Pvt Ltd (DAMEPL) against DMRC for enforcement of the order of the Supreme Court, which upheld the arbitration award of Rs 7,100 crore in favor of the company.
In its argument, DMRC also cited a proposed debt takeover from Reliance Infra in the draft, saying the banks might be more “sympathetic” to it.
More than three months have passed since the Supreme Court’s order was issued in favor of DAMEPL, where the Supreme Court dismissed DMRC’s petition for review.
Case background in brief:
August 2008 – Reliance Infra signed an agreement with DMRC for Delhi Airport Express on a BOT basis.
Oct 2012 – R. Infra arm served notice to terminate the agreement.
Oct 2012 – DMRC invoked arbitration clause, sought to initiate arbitration.
May 2017 – Arbitral tribunal awarded damages to R.Infra arm, ordered DMRC to pay Rs. 4,662 crore
March 2018 – Del HC single judge upheld the sentence, ordered DMRC to pay damages.
January 2019 – In relief at DMRC, a Del HC division bench overturned the arbitration award.
February 2019 – R. Infra arm proposed to SC to challenge Del HC’s decision to quash the arbitration award.
Sep 2021 – SC upholds arbitration award, considers DMRC obligated to pay in accordance with award.