The Supreme Court (SC) on Thursday upheld the Rs 2,800 crore arbitral award in favour of Anil Ambani promoted Reliance Infrastructure. The apex court directed the Delhi Metro Rail Corporation (DMRC) to pay damages of the said amount (Rs 2,800 crore) plus interest to Reliance Infrastructure's arm.
The SC verdict has come as a big relief for Anil Ambani who is facing personal insolvency in a case filed by the State Bank of India (SBI) even as insolvency proceedings against his telecom company R-Com are underway.
Reliance Infrastructure Limited in an official statement had said that the proceeds generated from the arbitral award will be utilised for debt reduction.
As of January 2019, the total amount of damages comprising the interest stood at Rs 4,500 crore.
In 2008, Reliance Infrastructure and DMRC had inked a deal for Delhi Airport Express Private Ltd. (DAMEPL) on a build-operate-transfer (BOT) basis. But Reliance Infrastructure terminated the contract in October 2012. Following this, DMRC invoked an arbitration clause seeking to begin arbitration.
The Arbitration Tribunal had in 2017 awarded damages to Reliance Infrastructure arm and instructed DMRC to pay Rs 2,800 crore plus interest. In 2018, the Delhi High Court (HC) upheld the arbitral award and ordered DMRC to pay damages.
However, the Division Bench of Delhi HC set aside the award in 2019. Following this, Reliance Infrastructure moved SC to contest the Delhi HC's decision.
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