Centre, Delhi Govt May Decide On DMRC's Request For Financial Assistance By Dec 12: Attorney General To High Court

The Delhi Metro Rail Corporation (DMRC) Friday informed Delhi High Court that the Centre and Delhi Government may reach to some understanding by December 12 on contributing towards the payment of its unpaid dues of arbitral award to Reliance Infrastructure-promoted Delhi Airport Metro Express Private Ltd (DAMEPL).

Attorney General for India R. Venkataramani, appearing for DMRC, requested a bench of Justice V Kameswar Rao to adjourn the matter to December 12, indicating that the two equity partners might be able to do a "next round of meeting" till then.

"Both (Centre and Delhi Government) have had a meeting explained in the affidavit, but because of the intervening elections I think the cabinet meeting is required for both the governments. So I think before 12th (December) they should be able to do a next round of meeting and have some understanding so that both parties contribute the 50%," the Attorney General told court.

He added: "Your lordships may have it on December 12. And in case there is a need for a further direction from the court, I'll come before court and tell what my difficulties are."

DMRC in a written reply earlier told court that in a meeting held on November 10, its equity partners, Centre and Delhi Government, have agreed to examine its request for financial assistance.

The counsel appearing for DAMEPL today submitted that the "situation has become worse", adding that DMRC has failed to comply with court's directions to pay the remaining arbitral amount on several occasions.

"Today's proposition is that we (opposite party) haven't even decided whether to make payment," the counsel said.

However, the court adjourned the matter to December 12 at the request of the Attorney General.

DMRC had earlier this month told court that it has written to the Union of India and Delhi Government for infusion of funds to make balance payment to DAMEPL.

The court is dealing with 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 told the court that since the equity partners are applying their minds to the issue, it would 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.