Centre, Delhi Govt to meet with leading banks on Nov 10, DMRC informs Delhi HC

The Delhi Metro Rail Corporation (DMRC) on Monday informed the Delhi High Court that a meeting is scheduled on November 10 between the Centre, Delhi government, DMRC, and other stakeholders with leading banks in regards to paying arbitral award payment to the Reliance Infrastructure subsidiary’s Delhi Airport Metro Express Private Limited (DAMEPL).
The DMRC in its fresh affidavit states that the Union Ministry of Housing and Urban Affairs in its letter dated October 28, 2022, had informed that the Union Government has decided to convene a meeting on November 10, 2022, between the Government of India and the Government of National Capital Territory of Delhi (GNCTD) and DMRC as well as Leading Banks, to discuss the matter. “This meeting is expected to come out with some proposals and it is, therefore, respectfully prayed that this Court may pass orders as deemed fit, after the outcome of the said meeting is placed before this Court”, stated the DMRC affidavit.
The bench of Justice V Kameshwar Rao on Monday granted time to the Delhi Metro Rail Corporation to work out the modalities for the payment of the arbitral award to DAMEPL after the court was informed that a meeting is scheduled on November 10, 2022. The matter is now deferred for November 18, 2022.
The DMRC earlier, in its short affidavit informed the court that it has written to the Union Ministry of Housing and Urban Affairs and to the Government of NCT Delhi, requesting an infusion of funds as Grant/Equity/Interest-free Subordinate Debt to DMRC, for payment of balance Arbitral Award amount.
The same bench earlier made clear that if the amount is not paid within time, the Court shall be constrained to call the appearance of the Managing Director of the DMRC before this Court.
In March months this year, the Delhi HC had passed a Judgement and said, “out of the funds available under the head Total DMRC Funds of Rs.1,452.10 cores, the judgment debtor is directed to keep aside an amount of Rs.628 crores (Rs.514+ Rs.114 crores) towards statutory expenses as mentioned herein above and from the remaining amount, part payment of decretal amount be made within two weeks.”
“For the remaining outstanding amount, the judgment debtor is directed to make the payments in two equal installments within two months. The first installment shall be paid on or before 30.04.2022 and the second installment shall be made on or before 31.05.2022,” said the judgment.
Court further added, “the award dated 11.05.2017 has attained finality and cannot be allowed to remain as a paper award, therefore, the judgment debtor is duty bound to either divert its finds shown to be available in different heads mentioned in the affidavit of 14.02.2022 after seeking permission of the Central Government, if necessary or raise loans to satisfy the award.”
The Delhi High Court earlier had directed DMRC to provide details of funds in its bank account in connection with a Reliance Infrastructure subsidiary’s (DAMEPL) plea for the execution of an arbitral award against it.
The Reliance Infrastructure subsidiary Delhi Airport Metro Express Pvt Ltd (DAMEPL) had filed an application requesting Delhi High Court to direct Delhi Metro Rail Corporation Limited (DMRC) to deposit Rs 6,208 crores available in its various bank accounts into the project escrow account without any delay.
DAMEPL, in its application, had rejected any out-of-court negotiations/ settlement or assignment of debt to the DMRC. DAMEPL plea states, “The Decree Holder is not agreeable to settling the matter out of the Court. Accordingly, no alternate proposal by DMRC is acceptable to Decree Holder, and that it presses for the execution on merits at the earliest.”
The plea further stated that the delay in payment by DMRC is causing immense prejudice to DAMEPL and its Promoter, Reliance Infrastructure Limited. In case the reliefs as sought are not granted, the Decree Holder shall suffer irreparable loss and injury.
Earlier, DAMEPL had filed an execution petition in the Delhi HC on September 12, 2021, seeking the court’s directions to DMRC to honour the SC order and pay Rs 7,200 crores to the company. DMRC, out of Rs 7200 crores, has so far paid only Rs 1000 crores.
The Supreme Court (SC), on 7 September 2021, upheld the arbitration award of Rs 7,200 crores in favour of DAMEPL.
In 2008, DAMEPL 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. (ANI)