SC Grants One-Week Ultimatum In DMRC-DAMEPL Refund Dispute

Supreme Court of India

The Supreme Court of India has provided a final one-week window for the Delhi Metro Rail Corporation (DMRC), Delhi Airport Metro Express Private Limited (DAMEPL), and Axis Bank to resolve their ongoing financial dispute concerning a ₹2,500 crore refund.

Failure to reach a settlement within this timeframe will prompt the Court to initiate legal proceedings against the involved parties.

Court Scrutinity

During the hearing, Senior Advocate Abhishek Manu Singhvi, representing Axis Bank, informed the bench comprising Justices Surya Kant and N. Kotiswar Singh that discussions are underway among the parties to settle the matter. He suggested that Attorney General R. Venkataramani could act as a mediator, albeit not in his official capacity, to expedite the resolution process

The bench directed Attorney General Venkataramani to prepare a list of senior officials from DAMEPL and Axis Bank, indicating the Court’s readiness to take coercive action if necessary.

“We will wait for one week. If they settle the dispute, it’s fine. Otherwise, the law will take its own course,” the bench stated, scheduling the next hearing for May 14.

Background Of The Case

This development follows the Supreme Court’s previous warning on March 3, emphasizing that its verdict on the DMRC-DAMEPL dispute must be followed in letter and spirit. The Court had cautioned that non-compliance would compel it to take coercive measures against the concerned officials of DAMEPL and Axis Bank.

The dispute originates from DAMEPL’s termination of its contract with DMRC in 2012, citing structural defects in the Airport Express Metro line. An arbitral tribunal had awarded DAMEPL approximately ₹8,000 crore, a decision initially upheld by the Supreme Court in 2021. However, in April 2024, the Court reversed its earlier judgment, citing a “grave miscarriage of justice,” and ordered DAMEPL to refund around ₹2,500 crore to DMRC.

Axis Bank, which manages the escrow account related to the dispute, has contended that it was not a party to the original arbitration proceedings and is now unexpectedly facing contempt notices. The Supreme Court, however, has maintained that all previous orders were passed against Axis Bank, indicating that the bank was aware of the proceedings.

As the deadline approaches, the parties involved are under significant pressure to reach an amicable settlement, failing which the Supreme Court is poised to enforce its directives through legal channels.