In a significant ruling, the Supreme Court has granted Delhi Metro Rail Corporation’s (DMRC) curative petition, instructing Reliance Infrastructure to refund Rs 8,000 crore to its subsidiary, Delhi Airport Metro Express Private Limited (DAMEPL). This decision comes after DMRC contested an arbitral award requiring payment to the Reliance Infrastructure subsidiary.
The apex court deemed the prior interference with the division bench order as a mistake, resulting in a severe miscarriage of justice. Following this ruling, Reliance Infrastructure shares plummeted by 20%, reaching the lower circuit.
DMRC’s curative petition challenged a two-judge bench’s decision, which upheld the validity of the arbitral award in favor of DAMEPL. Previously, a division bench of the Delhi High Court had nullified the award.
The dispute traces back to a 2008 agreement between Reliance Infrastructure and DMRC for the Delhi Airport Express project under a build–operate–transfer (BOT) model. Subsequently, Reliance Infrastructure terminated the agreement in 2012, prompting DMRC to invoke arbitration. In 2017, the arbitral tribunal ruled in favor of the Reliance Infrastructure arm, ordering DMRC to pay Rs 2,800 crore plus interest.
In a significant legal development of 2018, a pivotal decision emerged from a single-judge bench of the Delhi High Court, which upheld the award in question, thereby mandating the Delhi Metro Rail Corporation (DMRC) to fulfill the directive to pay damages. This ruling marked a crucial juncture in the ongoing legal dispute, setting a precedent for the subsequent course of action and legal proceedings.