Big win for DMRC: Supreme Court says PSU not obliged to pay Rs 8,000 cr to DAMEPL

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In what has turned out to be a major victory for Delhi Metro Rail Corporation (DMRC), the Supreme Court held that the PSU was not obliged to pay Rs 8,000 crore to Anil Ambani-owned Reliance Infrastructure firm, Delhi Airport Metro Express Pvt Ltd (DAMEPL). A bench headed by Chief Justice DY Chandrachud allowed the curative plea of the DMRC against the dismissal of its revision plea against a 2017 arbitral award. 

The apex court dismissed the arbitral award asking DMRC to pay Rs 8,000 crore to DAMEPL. The court allowed DMRC’s curative petition seeking the reversal of a court’s 2021 judgment that upheld the arbitration award in favour of Delhi Airport Metro. 

Shares of Reliance Infrastructure Ltd hit a lower circuit of 20 per cent in morning deals today. Its shares fell 20 per cent to Rs 227.40 against the previous close of Rs 284.20 on BSE. Market cap of the firm fell to Rs 9,008 crore.

CJI Chandrachud said that the earlier judgment of the court resulted in miscarriage of justice. He also ordered the proceedings in the execution petition filed by Delhi Airport Metro in the Delhi High Court to be discontinued and directed all amounts paid by DMRC to Delhi Airport Metro to be refunded. 

The Delhi Airport Metro Express had won the arbitration award DMRC in 2017. It had argued that running trains on the airport line was not viable due to structural defects in the viaduct made by the DMRC. In September 2021, the top court upheld the arbitral award. 

In November 2021, the Supreme Court dismissed a review petition filed by DMRC in the case, and subsequently in August 2022, DMRC filed a curative petition in the Supreme Court against the arbitral award. 



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