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Friday, January 28, 2022

Facing fund crunch, DMRC tells HC on 2017 arbitral award

The Supreme Court in September upheld the 2017 arbitral award favouring DAMEPL.

By: Express News Service | New Delhi |
Updated: December 7, 2021 7:27:03 am
DAMEPL has now filed a petition before the HC seeking enforcement of the arbitration award, saying that it is in a huge financial crisis and is unable to make repayments to banks and other financial institutions.

The Delhi Metro Rail Corporation on Monday told the Delhi High Court that it was not in a position to pay the entire amount of the 2017 arbitral award, pertaining to the Delhi Airport Metro Express Line, to Anil Ambani-led Reliance Infrastructure-promoted Delhi Airport Metro Express Pvt Ltd (DAMEPL).

The Supreme Court in September upheld the 2017 arbitral award favouring DAMEPL.

DAMEPL has now filed a petition before the HC seeking enforcement of the arbitration award, saying that it is in a huge financial crisis and is unable to make repayments to banks and other financial institutions.

“There’s a financial crunch and sudden liability like this might impact public interest. We are working out some options by which we can find a solution so public interest is not harmed, and they also get the money. I’d request 3 weeks’ time. If we have to pay, we’ll have to borrow from some bank etc,” submitted Solicitor General Tushar Mehta, representing DMRC, before the court of Justice Suresh Kumar Kait.

Mehta submitted that they are ready to deposit Rs 1,000 crore within 48 hours. The court directed DMRC to deposit it in an Escrow Account within 48 hours and listed the case for hearing on December 22. The court said DMRC can’t say it doesn’t have the money and “he (DAMEPL) continues to remain under debt”.

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