HC grants ten days to DMRC to find viable solution for repaying arbitral dues to Reliance Infra subsidiary
1 min read . Updated: 31 Jan 2023, 10:28 PM IST
PremiumOn 18 January, Delhi Metro Rail Corporation (DMRC) had sought from its two main shareholders - the Delhi Government and the central government, an “interest free subordinate debt” worth ₹3,500 crore each to pay the unpaid arbitral award passed in favour of Reliance Infrastructure-owned Delhi Metro Express Private Limited
The Delhi High Court on Tuesday acceding to the Attorney General of India’s request, granted the Delhi Metro Rail Corporation a final opportunity for payment of arbitral award dues owed to Reliance Infrastructure.
A bench led by Justice Yashwant Varma said, “The Attorney general apprises the court that the avenues which were being thought of in order to resolve the impasse which stands created presently could not fructify. He pressed for the deferral of the proceedings to grant judgement debtor one last opportunity to explore all available possibilities of the manner in which the debt flowing from the award could be liquidated". The court has posted the matter for final hearing on 13 February.
This comes after the R. Venkatramani, the attorney general of India informed the high court that an earnest attempt has been made to bring the matter to closure as early as possible.
The attorney general said that “Seeking an interest-free subordinate debt is a one final recourse that can be pursued before the court can look at any other options for getting the decree executed". Adding that there are chances that the last-minute effort to seek the subordinate debt from the government may fructify.
On 18 January, Delhi Metro Rail Corporation (DMRC) had sought from its two main shareholders - the Delhi Government and the central government, an “interest free subordinate debt" worth ₹3,500 crore each to pay the unpaid arbitral award passed in favour of Reliance Infrastructure-owned Delhi Metro Express Private Limited (DAMEPL).
The legal dispute pertains to the enforcement of an arbitration award of ₹7,200 crore in favour of the DAMEPL. Out of these ₹7,200 crore dues worth ₹2,600 crore have been paid by DMRC. It now owes an outstanding amount of ₹4,500 crore to DAMEPL.
Earlier in January, the Delhi government through its letter written to the Delhi Metro Rail Corporation (DMRC) said that it was not inclined to provide ₹3,565.64 crore towards equity, which was required as a part of payment to Delhi Airport Metro Express Ltd’s arbitral award.
