Delhi Metro Rail Corporation (DMRC) has filed a contempt petition with the Supreme Court against Delhi Airport Metro Express (DAMEPL) and other parties for failing to comply with a court order to refund over INR 4,500 crore, including interest, which had been deposited in an escrow account. This follows the apex court's cancellation of an INR 8,000 crore arbitration award in favour of DAMEPL. Despite the directive, no refund has been processed so far, prompting DMRC to take legal action for non-compliance.
Delhi Metro Rail Corporation (DMRC) has approached the Supreme Court, requesting the initiation of contempt proceedings against Delhi Airport Metro Express (DAMEPL), the managing director of the Reliance Infrastructure subsidiary, and others for "wilfully disobeying" the court's directive to refund the amount deposited in an escrow account.
Earlier this year, the apex court had overturned an arbitration award of approximately INR 8,000 crore, which DAMEPL had won against the state-run DMRC in 2017. It also instructed that the sum deposited by DMRC, as per the Delhi High Court's earlier ruling, be refunded. DMRC has now sought a direction to the parties involved, including Axis Bank and its managing director, to return more than INR 4,500 crore, including interest, which had been deposited in an escrow account held by the bank.
In its contempt petition, DMRC requested that the refund amount be increased to INR 2,599 crore, along with an additional interest of INR 1,935 crore and 2% interest on the INR 2,599 crore until the refund is processed. A bench of Justices BR Gavai and KV Viswanathan had been scheduled to hear the case, however, Justice Viswanathan recused himself, having previously represented the case as a lawyer.
DMRC informed the Supreme Court that following the ruling in April, it had written to both Axis Bank and DAMEPL for the refund. In May, DAMEPL, under the leadership of Anil Ambani, indicated that it had forwarded the letter to its lenders, who had either withdrawn or received the amount. However, DMRC asserted that no refund has been processed to date. The Supreme Court had earlier instructed that the enforcement proceedings before the High Court regarding the arbitral award should be discontinued. It also stated that any part of the awarded sum paid by DMRC through coercive actions should be restored to the corporation.
The principal amount of the arbitration award had been about INR 2,782.3 crore, but it had escalated to over INR 8,000 crore with interest. DAMEPL and its parent company have faced financial difficulties, and this arbitration award would have aided the group in repaying its debts. Reliance Infrastructure, in a stock exchange filing, maintained that the Supreme Court's order did not place any liability on the company, as it had not received any funds from DMRC or DAMEPL under the arbitration award.
In conclusion, the ongoing legal battle highlights the complexities surrounding large-scale arbitration disputes and enforcement of court orders in the infrastructure sector.
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