Airport Metro Arbitral Award: DMRC Seeks Review Of High Court Ruling, Says Attachment Of Statutory Expenses Will Cause Chaos On Delhi Roads

Seeking a review of Delhi High Court's recent decision on the execution petition filed by Reliance Infra-promoted Delhi Airport Metro Express Private Limited (DAMEPL), the Delhi Metro Rail Corporation (DMRC) has told the court 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.

Justice Yashwant Varma listed the matter for hearing on March 29. "Let both the Union as well as Ld. Counsel representing the GNCTD obtain appropriate instructions in respect of directions as framed in the order of 17 March, 2023, in the meanwhile," said the court.

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'".

Justice Varma today said it was not an "inadvertent slip" and the court was aware of the March 10 order. The court said it will list the review plea before the end of two weeks given to the Union and Delhi government for taking a call on DMRC's request.

In response to court's question regarding any "hope of impasse being resolved", Attorney General for India, R Venkataramani said "something is happening". "As of till today morning, I have not got into thick of matter. I also want to ensure that this process does not become pothole process," Venkataramani said.

The DMRC has argued that the March 10, 2022 judgment has attained finality in law and the co-ordinate bench in that decision has directed it to pay the awarded amount to DAMEPL "from the Total DMRC Funds, (which is a running Operation and Maintenance Account of the DMRC) after keeping aside an amount of Rs. 514 Cr. + 114 Cr, from the remaining amount available in different bank accounts of judgment debtor."

"[The] attachment of “Total DMRC Funds” i.e. salary, medical expenses, post retiral benefits of employees, security deposit on smart cards i.e. Statutory Expenses, which is refundable to the commuters and other Operation and Maintenance expenses required for smooth functioning of the Metro Operations in NCT of Delhi, in terms of directions given by this Hon’ble Court would result in complete stoppage and immediate shut down of the entire Metro network Operations, which would, otherwise, result in huge inconvenience to more than 50 lakhs nos. of commuters who travel by Metro Network of the Review Petitioner on daily basis. The said attachment would also result in complete chaos on the roads of NCT of Delhi."

DMRC has also submitted that the amount standing to its credit under the head “Total DMRC Funds” includes the revenue generated through sale of Metro tickets or Cards and various liabilities including liabilities towards O&M expenses have to be borne out by it from “Total DMRC Funds”. It also includes expenditure towards consumption of Electricity and other operation and maintenance expenses, DMRC has said.

"Thus, the amount standing under the head “Total DMRC Funds” keeps on fluctuating, on a daily basis and is to incurred for safe running of the Metro Operations. The whole intent of Order dated 10.03.2022 to safeguard Salaries, Retiral benefits and Metro Card security deposit money, was to ensure and procure, the efficient and safe operation and maintenance of the Metro Lines, in NCR. The attachment of all amounts standing under the head of, “Total DMRC Funds”, including the amounts needed to Operate and Maintain the Metro Lines in NCR, would bring to halt the operation of Metro, which would severely prejudice the public interest of daily commuters in NCR, with about approx. 5 million journeys getting affected daily in NCR," the corporation has argued.

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