NEW DELHI (Metro Rail News): The Supreme Court made a significant decision on Wednesday, April 10, overturning its 2021 ruling that upheld an arbitral award favouring Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure, against Delhi Metro Rail Corporation (DMRC). This ruling relieves DMRC of a substantial liability, approximately Rs 8000 crores.
The legal dispute between Delhi Airport Metro Express Private Limited (DAMEPL) and Delhi Metro Rail Corporation (DMRC) revolves around a concession agreement initiated in 2008 for the construction of the Delhi Airport Express project on a Build–operate–transfer (BOT) basis. DAMEPL terminated the agreement in 2012, citing unresolved structural defects in the metro line, despite their notification to DMRC.
Following the termination, DMRC invoked arbitration, disputing the legality of DAMEPL’s termination notice issued on October 8, 2012. The arbitral tribunal, formed under the concession agreement, examined this matter. In 2017, the tribunal ruled in favour of DAMEPL, awarding damages totalling ₹2800 crore plus interest to the company.
Twists and Turns in Legal Battle
The legal battle persisted into 2018 as the dispute moved through the corridors of the judiciary. Initially, a single-judge bench of the Delhi High Court upheld the arbitral award, affirming the tribunal’s decision favouring DAMEPL. However, the legal landscape shifted when the case proceeded to appeal.
On appeal, a Division Bench overturned the previous ruling, casting doubt on the validity of the arbitral award. This reversal added layers of complexity to the case, prompting further legal shuffle from both parties involved. Subsequently, the matter reached the Supreme Court, where a decisive judgment was awaited to bring clarity and resolution to the protracted legal battle.
Legal Front
Despite the dismissal of a review petition, the legal battle persisted. Senior Advocates Mukul Rohatgi, Harish Salve, Kapil Sibal, JJ Bhatt, and Prateek Seksaria, alongside a team of advocates, represented DAMEPL.
Conversely, with their team of advocates, Attorney General R Venkataramani, Senior Advocates KK Venugopal, Parag Tripathi, and Maninder Singh appeared for DMRC.
The intricate and consequential nature of the case underscores the complexities of infrastructure agreements and the arbitration process.
Discover the endless possibilities of our city’s Metro at InnoMetro, our flagship Expo and Conference. Be an active participant in shaping its future towards a more sustainable tomorrow. Stay informed and join us to take a step towards a brighter future.
