Reliance infrastructure case: Delhi HC asks DMRC to furnish its bank account details

The Delhi High Court on Wednesday asked the Delhi Metro Rail Corporation (DMRC) to furnish its bank account details within a week while hearing an execution petition filed by the Delhi Airport Metro Express Pvt Ltd (DAMEPL) to direct the Delhi Metro Rail Corporation (DMRC) to pay the amount it won in an arbitration dispute.

The bench of Justice Suresh Kumar Kait noted the submission of DMRC informing the court that it has Rs 1,642 crore in their bank account. After taking note, the bench directed DMRC to file an affidavit having details of its bank accounts along with the balance amount.

Justice Kait also said that there was no such embargo with respect to its bank accounts, while the attachment of DMRC's properties was not permitted.

However, Solicitor General Tushar Mehta appearing for DMRC today submitted that though the award cannot be disputed, some amount has been deposited.

The court later listed the matter for January 11, 2022, for further hearing.

Earlier, DMRC had informed the Delhi High Court that it has agreed to deposit Rs 1,000 crore in an escrow account and sought more time to compute the payable amount in the arbitral dispute with Reliance Infrastructure's Delhi Airport Metro Express Pvt Ltd (DAMEPL).

DMRC has disputed the payable amount in the arbitral dispute with Reliance Infrastructure its case in the Delhi High Court, DMRC has argued that the payable amount is Rs 5,000 crore as against Reliance Infra's claim of Rs 7,100 crore.

Reliance Infrastructure has recently approached Delhi High Court and sought the court's directions to Delhi Metro Rail Corporation (DMRC) for the payment of a Rs 7,100 crore arbitration award to the company.

The plea sought an order of execution of the award dated May 11, 2017, passed by the Arbitral Tribunal and directed the Judgment Debtor to pay to the Decree Holder a sum of Rs 7,045.41 crores as on the date of filing of the present petition, with interest at the rate of SBI PLR +2 per cent on Rs 4499.37 crores from September 11, 2021, till the date of payment of the said sum, and interest at the rate of 11 per cent on Rs 210.16 crores from September 11, 2021, till the date of payment of the said sum, stated plea.

It also sought an order of attachment and sale of both moveable and immovable properties and/or attachment and recovery of the Bank Accounts and other assets of the Judgment Debtor to the extent of Rs. 7,045.41 crores and the sale proceeds thereof may be paid to the Decree Holder towards satisfaction of the Decree.

The Supreme court has already dismissed the review petition filed by DMRC against the apex court order, that had upheld the Rs 7,100 crore arbitral award in favour of Reliance Infrastructure arm, Delhi Airport Metro Express Pvt Ltd (DAMEPL), that used to operate Delhi Airport Metro line.

The Supreme Court (SC) in its order on September 9 had upheld the Rs 7,100 crore Arbitral Award in favour of Delhi Airport Metro Express Private Limited (DAMEPL). A bench of the apex court headed by Justice L Nageswara Rao had quashed the Delhi High Court order that had set aside the arbitration award in favour of DAMEPL, which had pulled out from running the Airport Express metro line over safety issues, states petition.

The arbitral tribunal in its May 2017 award had accepted the DAMEPL's claim that the running of operations on the line was not viable due to reasons such as structural defects.

In 2008, DAMEPL had entered into a contract with DMRC for running the airport metro line till 2038.

As disputes arose between the parties, DAMEPL stopped operating the metro on the airport line and invoked the arbitration clause against DMRC alleging violation of contract and sought a termination fee.

( With inputs from ANI )

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