Delhi High Court Grants Time To DMRC For Payment Of Outstanding Amount Of Arbitral Award To DAMEPL Till August 5

The Delhi High Court on Monday granted time to Delhi Metro Rail Corporation (DMRC) to ensure payment of the outstanding decreetal amount to Reliance Infrastructure-promoted Delhi Airport Metro Express Pvt Ltd (DAMEPL) on or before August 5.

The development came in connection with the plea filed by DAMEPL seeking enforcement of the arbitration award dated May 11, 2017. 

The High Court on March 10 had directed DMRC to pay the entire decreetal amount of over Rs 4,600 crore along with interest in two equal instalments in two months. The said order was upheld by the Supreme Court on May 5.

DAMEPL had then approached the High Court claiming that despite the direction of payment of the awarded amount, DMRC had paid only a sum of Rs. 166.44 crores to DAMEPL on March 14, 2022, and had not paid any amount thereafter.

Hence, an application was filed claiming the payment of Rs. 4427.41 crores (as on May 10, 2022) by attachment of bank accounts, fixed deposit, etc. of DMRC. Further, it was claimed that the interest continued to apply till the date of actual payment by DMRC.

A single judge bench comprising of Justice V Kameswar Rao noted that the challenge to the order dated March 10, 2022 by DAMEPL was decided on May 05, 2022 by the Apex Court and that action had been initiated by the DMRC.

"…. time should be granted to DMRC to ensure payment of the outstanding amount to the applicant/decree holder on or before August 05, 2022. It is ordered accordingly," the Court directed.

The Court thus directed DMRC to file an affidavit, giving the break up of the payments made to satisfy the award within one week, while posting the matter for further hearing on August 16.

It was argued on behalf of DAMEPL that DMRC has, contrary to the Arbitral Award dated May 11, 2017 and the Supreme Court judgment upholding the Award, contended that the Execution Judgement allegedly rejected DAMEPL's entitlement to all pre-award interest. It was argued that the attempt of DMRC was to read a single sentence de hors the remaining Execution Judgement to mislead the Court.

The Judgment Debtor, DMRC, had preferred a challenge under Section 34 of the Arbitration and Conciliation Act, 1996 to the Award which was dismissed by a Single Judge of the High Court vide judgment dated March 6, 2018.

Thereafter, the said judgment was challenged before a division bench under Section 37 of the Act which was partly allowed and the Award was set aside vide judgement dated January 15, 2019.

DAMEPL, the Decree Holder, had then preferred a Special Leave Petition before the Supreme Court of India against the judgement of 2019 which was allowed in it's favour vide judgement dated September 9, 2021.

Accordingly, since the Award of 2017 could be executed as a decree in terms of Section 36 of the Act, the present petition was being filed by DAMEPL for execution of the Award passed by the Arbitral Tribunal.

Senior Advocate Sandeep Sethi appeared for DAMEPL. Senior Advocate Parag P. Tripathi appeared for DMRC.

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

Citation: 2022 LiveLaw (Del) 581

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