On Wednesday, the Supreme Court invalidated an arbitral award of Rs 8,000 crore that had been given to Reliance Infrastructure's subsidiary, Delhi Airport Metro Express Pvt (DAMEPL), dealing a blow to Anil Ambani's company. The Delhi Metro Rail Corp (DMRC) has deposited a sum, and the supreme court has ordered DAMEPL to reimburse it.
The issue concerns a 2008 agreement that was executed by the two businesses. The deal called for the two businesses to plan, build, run, and maintain Delhi's airport express line for a duration of thirty years.
In 2012, DAMEPL halted operations upon discovering faults in the viaduct, which fell under the jurisdiction of DMRC.In October 2012, the formed received a notice of termination. The project was restarted in 2013 following an examination and the infrastructure of the line being cleared; nevertheless, DAMEPL halted operations within five months.
DMRC subsequently triggered the arbitration clause.Nonetheless, the arbitral panel ordered DMRC to pay Rs. 2,782 crore plus interest in 2017 after finding in favor of Anil Ambani's company.
However, the award was overturned and the business received relief from a division bench of the same court. The dispute was taken to the highest court by Anil Ambani's business. At first, the Supreme Court reversed the division bench verdict of the Delhi High Court, holding that the arbitral award ruling was in compliance with the law.
On Wednesday, however, the SC affirmed the division bench ruling in response to a curative plea that DMRC had submitted. A court headed by Chief Justice of India DY Chandrachud declared that DMRC will receive a return for all of the money it contributed. DMRC is now obligated to reimburse the Rs 3,300 crore it paid to the Reliance Infra division.
In a stock exchange statement, Anil Ambani's Reliance Infrastructure Ltd stated that the Supreme Court's judgment has not placed any obligations on it.
Reliance Infrastructure would want to make it clear that it is not liable for anything as a result of the Supreme Court's April 10, 2024, Order, and that it has not received any payment from DMRC/DAMEPL in relation to the arbitral judgment.
Despite being a Reliance Infrastructure subsidiary, DAMEPL is an independent company and is responsible for its debts.
