SC seeks response from DMRC on Reliance infra arm's plea on recovery of arbitration dues

The Supreme Court on Friday sought Delhi Metro Rail Corp's response to a plea filed by a Reliance Infrastructure unit, which sought directions to recover ₹4,520.78 crore towards enforcement of an arbitration award it had won in May 2017 against Delhi's metro operator.

A bench led by Justice BR Gavai agreed to hear the plea filed by Delhi Airport Metro Express (DAMEPL), which had operated the airport express line in Delhi, and asked DMRC to explain its stand by December 12, the next date of hearing.

Under its contract with Delhi Metro, the Reliance Infra unit was to run the airport line till 2038. But it stopped the operations citing safety issues, withdrew from the contract and invoked the arbitration clause. An arbitration tribunal in May 2017 accepted DAMEPL's claim.


Despite the fact that the amount to be paid by Delhi Metro to the Reliance Infra firm having been "crystalised", the former is "failing and neglecting to make payment", senior counsel Jaideep Gupta and counsel Mahesh Agarwal told the judges.

DAMEPL had asked the SC to summon Delhi Metro's managing director and ask him to provide a timeline to make the payment and furnish the modalities for doing that.

DAMEPL said the Delhi High Court had adjourned the matter several times at the Delhi Metro's request without giving any directions for payments. "This extension not only frustrates the objective of the Arbitration Act, but is also causing grave and irreparable prejudice" to DAMEPL which is required to repay loans to the banks and financial institutions, it argued. Delhi Metro has so far paid only ₹166.44 crore, on March 14, it said.