The Delhi High Court on Friday ordered the Delhi Metro Rail Corporation (DMRC) to deposit all money owed under an arbitral award to Anil Ambani’s Delhi Airport Metro Express Private Limited (DAMEPL) upon receipt of funds from the Central and Delhi governments.
Justice Yashwant Varma ordered the two governments to address DMRC’s request for an extension of the sovereign guarantee subordinate debt, allowing it to discharge its responsibilities under the award.
The Court further stated, “If the DMRC is granted permission, it must deposit the whole sum payable under the award, plus interest, within one month. If the Union Ministry or GNTCD denies the proposal, the Union shall at the end of two weeks, revert and repatriate all funds received from DMRC after March 10, 2022.”
The DMRC was ordered to send the total sum owed to DAMEPL, plus interest, to the escrow account upon receipt of the funds.
In the case that the parties fail to follow these directives, the full sum standing to the credit of DMRC as of today would be attached, according to Judge Varma.
“If DMRC fails to settle any due funds not withstanding the foregoing directives, the Court reserves the power to issue additional suitable directions against the Union Ministry and GNTCD as a result of the corporate veil being fully lifted.”
DAMEPL, a Reliance Infrastructure company, has filed an execution petition seeking payment of money owed by the DMRC as part of an arbitral award.
According to the corporation, the entire arbitral award sum plus interest in its favour is over 8,000 crore, of which over 6,300 crore has still to be paid. The Central and Delhi governments each hold 50% shares in the DMRC. They both, however, declined to pay the money.
The award under consideration resulted from a deal inked in 2008 between the DMRC and DAMEPL to build and operate the Delhi Metro’s orange line, which connects Indira Gandhi International Airport’s Terminal-3 to Dwarka Sector-21.
The High Court ordered DMRC to pay the whole outstanding sum to DAMEPL, plus interest, in two equal installments by May 31, 2022. On May 5, the Supreme Court upheld this order.
In December 2022, the Supreme Court asked the High Court to proceed with the case and reach a decision within three months.
