DMRC says it will pay Rs 1,000 cr to Reliance Infra's arm in 48 hrs
The Solicitor General (SG) of DMRC told the court that public functions will be affected if entire amount is paid in one go.
- Dec 6, 2021,
- Updated Dec 6, 2021 2:47 PM IST
The Delhi Metro Rail Corporation (DMRC) has sought more time to compute payable amount in the arbitral dispute with Reliance Infrastructure's arm, Delhi Airport Metro Express Pvt Ltd (DAMEPL).
However, it told the Delhi High Court that it will deposit Rs 1,000 crore in an escrow account in 48 hours, adding that it needed time to provision money from banks for the remaining amount.
The Delhi High Court was hearing a petition by Reliance Infrastructure against DMRC to enforce a Supreme Court order for payment of Rs 7,100 crore arbitration award to Anil Ambani company. The money will come to escrow account as per arbitral award.
During the hearing, the court observed: "Final amount is already decided, what's the issue of computation?"
In its argument, DMRC claimed it has to pay Rs 5,000 crore as against RInfra's claim of Rs 8,000 crore.
Further, DMRC had argued that there is cash crunch and it can't pay full amount at once. It said that it will have to borrow from banks to pay. The Solicitor General (SG) of DMRC told the court that public functions will be affected if entire amount is paid in one go.
The HC has now deferred the hearing for December 22.
The execution petition was filed by the DAMEPL against DMRC to get the Supreme Court order enforced, that had upheld the Rs 7,100 crore arbitration award in favour of the company. DAMEPL previously operated the Delhi Airport Metro line.
The SC had dismissed the review petition filed by state-owned firms against its order upholding an arbitral award to Reliance Infrastructure subsidiary.
Since the SC order was delivered on September 9, 2021, the interest liability of DMRC has already gone up by around Rs 200 crore. The Supreme Court bench headed by Justice L Nageswara Rao had quashed the Delhi High Court order that had set aside the arbitration award in favour of DAMEPL, which had pulled out from running the Airport Express metro line over safety issues.
The arbitral tribunal in its May 2017 award had accepted the DAMEPL's claim that the running of operations on the line was not viable due to reasons such as structural defects.
In 2008, DAMEPL had entered into a contract with DMRC for running the airport metro line till 2038. When disputes arose between them, DAMEPL stopped operating the airport line and invoked an arbitration clause against DMRC. It alleged violation of contract and sought a termination of fees.
The Delhi Metro Rail Corporation (DMRC) has sought more time to compute payable amount in the arbitral dispute with Reliance Infrastructure's arm, Delhi Airport Metro Express Pvt Ltd (DAMEPL).
However, it told the Delhi High Court that it will deposit Rs 1,000 crore in an escrow account in 48 hours, adding that it needed time to provision money from banks for the remaining amount.
The Delhi High Court was hearing a petition by Reliance Infrastructure against DMRC to enforce a Supreme Court order for payment of Rs 7,100 crore arbitration award to Anil Ambani company. The money will come to escrow account as per arbitral award.
During the hearing, the court observed: "Final amount is already decided, what's the issue of computation?"
In its argument, DMRC claimed it has to pay Rs 5,000 crore as against RInfra's claim of Rs 8,000 crore.
Further, DMRC had argued that there is cash crunch and it can't pay full amount at once. It said that it will have to borrow from banks to pay. The Solicitor General (SG) of DMRC told the court that public functions will be affected if entire amount is paid in one go.
The HC has now deferred the hearing for December 22.
The execution petition was filed by the DAMEPL against DMRC to get the Supreme Court order enforced, that had upheld the Rs 7,100 crore arbitration award in favour of the company. DAMEPL previously operated the Delhi Airport Metro line.
The SC had dismissed the review petition filed by state-owned firms against its order upholding an arbitral award to Reliance Infrastructure subsidiary.
Since the SC order was delivered on September 9, 2021, the interest liability of DMRC has already gone up by around Rs 200 crore. The Supreme Court bench headed by Justice L Nageswara Rao had quashed the Delhi High Court order that had set aside the arbitration award in favour of DAMEPL, which had pulled out from running the Airport Express metro line over safety issues.
The arbitral tribunal in its May 2017 award had accepted the DAMEPL's claim that the running of operations on the line was not viable due to reasons such as structural defects.
In 2008, DAMEPL had entered into a contract with DMRC for running the airport metro line till 2038. When disputes arose between them, DAMEPL stopped operating the airport line and invoked an arbitration clause against DMRC. It alleged violation of contract and sought a termination of fees.