Centre, Delhi Govt To Examine DMRC's Request For Payment Of Dues To Reliance Infra, High Court Told

The Delhi Metro Rail Corporation (DMRC) has told the Delhi High Court that the Centre and Delhi Government have agreed to examine its request for financial assistance for making payment of unpaid dues of arbitral award to Reliance Infrastructure-promoted Delhi Airport Metro Express Private Ltd (DAMEPL).

DMRC has thus prayed that any order in the pending proceedings be passed only after the outcome of the consideration by the two equity holders is placed on record.

As per an additional affidavit filed on November 17, DMRC has informed the court that a meeting was held on November 10 under the chairmanship of Secretary of Union Ministry of Housing and Urban Affairs, which was attended by Delhi Government's Chief Secretary GNCTD, DMRC's Managing Director and representatives of various leading banks.

The court has been informed that the Delhi Government has requested DMRC to submit the updated and complete details for considering its request and to take appropriate decision to bear 50% of the total arbitral award.

"GNCTD further informed that after considering the proposal, the same shall require approval of the Cabinet," the affidavit adds.

Furthermore, the court has also been apprised that the Centre submitted that DMRC's request to bear 50% of the amount will be examined by the Government of India in entirety for taking an informed decision in the matter.

"It is therefore, respectfully prayed that this Hon'ble Court may pass orders as deem fit, after the outcome of the aforesaid consideration/examination and approval of request of DMRC by the both the equity partners of DMRC i.e. Union Ministry of Housing and Urban Affairs and Government of NCT of Delhi, is placed before this Hon'ble Court," the affidavit states.

The matter is scheduled for hearing tomorrow before Justice V. Kameswar Rao.

DMRC had earlier this month told the court that it has written to its two equity partners - the Union of India and Delhi Government, for infusion of funds to make balance payment to the DAMEPL in terms of a 2017 arbitral award.

The court is hearing a petition filed by DAMEPL seeking enforcement of the arbitration award dated May 11, 2017. In 2008, DMRC had signed a contract with DAMEPL, related to "the design, installation, commissioning, operation and maintenance of the line". 

However, due to certain disputes, the matter went into arbitration in 2012 - the DMRC invoked the arbitration after DAMEPL terminated the agreement on certain grounds. The award in favour of DAMEPL was upheld by the Supreme Court last year.

According to DMRC, it owes Rs.7,010.08 Crore to the Reliance subsidiary as on September 06. Till now, a sum of Rs.2,599.17 Crore has been paid to DAMEPL. The DMRC has sought Rs 3500 Crore each from Centre and Delhi government.

Attorney General for India R. Venkataramani, appearing for DMRC, on October 10 had informed the bench of Justice Rao that since the equity partners are applying their minds to the issue, it will be in the fitness of things that no adverse order touching upon the maintenance and operations of Delhi Metro is passed by the court.

The DMRC had also stated that if any adverse order is passed against the company at the present stage, its operations would come to a complete standstill, which would be prejudicial to the public interest considering that approximately 48 lakh journeys take place on a daily basis.

Case Title: Delhi Airport Metro Express Private Limited v. Delhi Metro Rail Corporation Ltd.