Texmaco Rail moves NCLT to restore insolvency plea against Delhi Airport Metro Express

Texmaco Rail & Engineering has approached the National Company Law Tribunal (NCLT) seeking to restore its insolvency petition filed against Delhi Airport Metro Express. Delhi Airport Metro Express Pvt Ltd (DAMEPL) is a special-purpose vehicle in which Anil Ambani's Reliance Infrastructure Ltd owned 95 per cent holding and the remaining 5 per cent was with Spanish train-equipment maker Construcciones Y Auxiliar de Ferrocarriles SA.

A two-member Delhi-based bench comprising Members Mahendra Khandelwal and Sanjeev Ranjan issued notice to DAMEPL, directing it to file its reply over the petition filed by Kalindee Rail Nirman.

The previous insolvency petition was filed by Kalindee Rail Nirman, which has now been merged with Texmaco, now one of the leading Railway EPC players in India.



Kalindee Rail Nirman an operational creditor of Delhi Airport Metro Express earlier approached the NCLT in 2019 with an insolvency petition.

However, it withdrew the matter following a settlement in the matter with DAMEPL, after it was assured of payment from the proceeds of the arbitral awards.

DAMEPL has won arbitration after the tribunal had directed Delhi Metro Rail Corporation (DMRC) to pay nearly Rs 8,000 crore.

However, earlier this year, the Supreme Court had quashed the arbitral tribunal award directing (DMRC) to pay Rs 7,687 crore to DAMEPL. The apex court said it had suffered a "grave miscarriage of justice" from the arbitral award of 2017.

DAMEPL had bagged the contract for the construction, operation and maintenance of the Delhi Airport Metro Express Ltd in 2008 on a public-private partnership.

However, trouble began when DAMEPL complained of defects in the structural design and gave DMRC 90 days to cure the defects.

DMRC took steps to repair the defects during the 90 days, however, DAMEPL terminated the contract in 2012 and took the matter to arbitration.

In 2017, this arbitral tribunal ruled in favour of DAMEPL, awarding Rs 2,800 crore along with interest in damages. This was challenged before several forums and finally, the Supreme Court set it aside earlier this year.

Now on Tuesday, counsel appearing for Texmaco Rail & Engineering said after losing the arbitration, DAMEPL had no means to pay its dues.

It further contended that DAMEPL had no other income to clear its dues besides the proceeds, which it was expecting to receive from the arbitration against DMRC.