DMRC to challenge tribunal order on airport line in Delhi HC

NEW DELHI: The Delhi Metro Rail Corporation (DMRC) will move the Delhi High Court against a tribunal's order asking it to pay Rs 2,950 crore to a Reliance-infra subsidiary in a case related to the Airport Express premium corridor.

The Delhi Airport Metro Express Private Limited ( DAMEPL), the subsidiary, had terminated its contract in 2013 after initially running operations on this corridor, which an arbitration tribunal upheld as valid yesterday.

However, DMRC termed DAMEPL's termination notice as "legally untenable", saying it was against the provisions of the concessionaire agreement that was governing the project.

It was metro's first project based on the public-private partnership model.

"The DMRC has decided to seek legal remedies under the Arbitration Act 1996 and have decided to file an objection petition before the High Court of Delhi on this matter under Section 34 of the Arbitration Act," Anuj Dayal, the executive director (communications) of DMRC, said.

DAMEPL had pulled out of the 22.7-km line, that connects New Delhi railway station with IGI terminal 3, in 2013 after a prolonged tussle with metro over alleged construction defects.

The compensation covers damage as a result of breach by DMRC of its obligations under the concession agreement and material adverse effect on the ability of DAMEPL to perform its obligations under the concession pact, RInfra said in a statement yesterday.