Industry

Reliance Infra moves plea in Delhi HC to execute arbitration award won against Delhi Metro


Reliance Infrastructure has moved a plea in the Delhi High Court, seeking to execute an arbitration award it won against the Delhi Metro in the Supreme Court. The top court had also dismissed a review filed by Delhi Metro Rail Corporation against the ruling.

The plea will be heard by Justice Suresh Kumar Kait on Monday.

The top court had, in an order on September 9, 2020, upheld a Rs 4,662.37 crore award in favour of Reliance Infrastructure. Inclusive of interest and other dues, the amount has now grown to Rs 7,100 crore.

In doing so, a bench led by Justice L Nageswara Rao had quashed a Delhi High Court order against Reliance Infrastructure subsidiary Delhi Airport Metro Express Private Ltd (DAMEPL).

Though a single judge had initially ruled in favour of Reliance Infrastructure, a division bench of the high court had overturned it on an appeal filed by the Delhi Metro.

An arbitration tribunal had in May 2017 accepted DAMEPL’s claim that it was not viable for it to keep running the airport express line over safety issues.

The Delhi Metro and DAMEPL had in 2008 entered into an agreement mandating the latter to run the airport express till 2038. But DAMEPL stopped operating the airport line, withdrew from the contract and invoked the arbitration clause.

Reliance Infrastructure has sought urgent execution of the award as a decree of the court on the grounds that it was cash-strapped and its loan accounts were on the verge of being classified as non-performing assets. It also urged the court to pass orders attaching and selling of assets, movable and immovable, and bank accounts of the Delhi Metro to cover the award and also appoint a receiver to handle the execution of the decree.



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