DMRC’s Salaries, O&M Expenses Not To Be Attached In Case Of Failure To Pay Unpaid Dues To Reliance Infra: Delhi High Court Clarifies

The Delhi High Court has clarified that the salaries and other Operation & Maintenance (O&M) expenses to be borne by Delhi Metro Rail Corporation will not be attached in case of its failure to pay dues to Reliance Infra-owned Delhi Airport Metro Express Private Limited (DAMEPL) under the 2017 arbitral award.

Justice Yashwant Varma was hearing a petition moved by DMRC seeking review of an earlier decision on the execution petition filed by DAMEPL.

It was DMRC’s case that the attachment of its statutory expenses will result in immediate stoppage of the entire metro network in National Capital Region and cause inconvenience to more than 50 Lakh commuters.

Referring to an earlier order passed on March 10, 2022, Attorney General R. Venkataramani appearing for DMRC submitted that adequate protection was extended to the metro corporation regarding the salaries and O&M expenses.

He further submitted that the court in its recent judgment had failed to make an identical provision while framing slew of directions on the payment of unpaid dues.

One of the directions was that in case of failure on DMRC’s part to make the payment, the entire amount standing to the credit of “Total DMRC Funds, Total Project Funds and Total Other Funds” shall stand attached without reference to the court.

While disposing of the review petition, the court observed that in terms of last year’s order, DMRC had been accorded protection insofar as salaries, medical benefits, post retrial benefits, security deposit on smart cards and other liabilities towards O&M expenses are concerned.

“It is the aforesaid order which has attained finality inter partes. This Court is of the considered view that the said stipulation should also be read in direction „D‟ as framed. The said direction shall consequently stand amended and liable to be read accordingly,” the court said.

On March 17, the high court issued a slew of directions to Union of India, Delhi government and DMRC to ensure payment of unpaid arbitral award money to the Reliance Infra-owned company. The court directed DMRC's two stakeholders to forthwith attend to the corporation's request for extension of sovereign guarantee or subordinate debt to enable it make payment of dues to DAMEPL) under the 2017 arbitral award.

However, the court in the decision also said that if the union government or GNCTD decline the DMRC's request, the union ministry shall forthwith and at the end of two weeks, revert and repatriate all money received by it from DMRC post March 10, 2022, pursuant to its directives, so as to ensure that "the credit balance in the "Total DMRC Funds, Total Project Funds and Total Other Funds" reflects the balance as it existed on March 10, 2022. 

While directing DMRC to then transfer "an amount equivalent to the total amount payable in terms of the Award along with interest" to DAMEPL, the court also said if same does not happen, the entire amount under 'Total DMRC Funds, Total Project Funds and Total Other Funds' heads as of March 17 shall stand attached forthwith.

In the review petition, the DMRC said the directions in the March 17 ruling are contradictory to the judgement passed by the court on March 10 last year "wherein this Hon’ble Court had chosen not to attach the amount committed to the salary, medical expenses and post retiral benefits of employees as well as the security deposit on smart cards i.e. Statutory Expenses, which is refundable to the commuters, under the head, 'Total DMRC Funds'".

Title: DELHI AIRPORT METRO EXPRESS PRIVATE LIMITED vs DELHI METRO RAIL CORPORATION LTD 

Citation: 2023 LiveLaw (Del) 276

Click Here To Read Order