Reliance Infrastructure case: DMRC agrees to deposit Rs 1,000 crore in escrow account

New Delhi [India], December 6 (ANI): Delhi Metro Rail Corporation (DMRC) on Monday informed the Delhi High Court that it has agreed to deposit Rs 1,000 crore in an escrow account within 48 hours and sought more time to compute payable amount passed in the order of arbitral dispute with Reliance Infrastructure's Delhi Airport Metro Express Pvt Ltd (DAMEPL).
In its case in Delhi High Court, DMRC has disputed the payable amount passed in the arbitral dispute order with Reliance Infrastructure. DMRC has argued that the payable amount is Rs 5,000 crore as against Reliance Infra's claim of Rs 7,100 crore.
However, it has agreed to deposit Rs 1,000 crore in an escrow account in the next 48 hours.
Reliance Infrastructure recently approached Delhi High Court and sought court's directions to DMRC for the payment of a Rs 7,100 crore arbitration award to the company.
Plea sought "an order of execution of the award dated May 11, 2017, passed by the Arbitral Tribunal and directing the Judgment Debtor to pay to the Decree Holder a sum of Rs. 7,045.41 crores as on the date of filing of the present petition, with interest at the rate of SBI PLR +2 per cent on Rs. 4499.37 crores from September 11, 2021, till the date of payment of the said sum, and interest at the rate of 11 per cent on Rs. 210.16 crores from September 11, 2021, till the date of payment of the said sum," stated the plea.
It also sought an order of attachment and sale of both moveable and immovable properties and/or attachment and recovery of the Bank Accounts and other assets of the Judgment Debtor to the extent of Rs. 7,045.41 crores and the sale proceeds thereof may be paid to the Decree Holder towards satisfaction of the Decree.
The Supreme Court has already dismissed the review petition filed by DMRC against the apex court order that had upheld the Rs. 7,100 crore arbitral award in favour of Reliance Infrastructure arm, Delhi Airport Metro Express Pvt Ltd. (DAMEPL) that used to operate Delhi Airport Metro line.
The Supreme Court in its order on September 9 had upheld the Rs 7,100 crore Arbitral Award in favour of Delhi Airport Metro Express Private Limited (DAMEPL).
A bench of the apex court headed by Justice L Nageswara Rao had quashed the Delhi High Court order that had set aside the arbitration award in favour of DAMEPL, which had pulled out from running the Airport Express metro line over safety issues, stated the petition.
The arbitral tribunal in its May 2017 award had accepted the DAMEPL's claim that the running of operations on the line was not viable due to reasons such as structural defects.
In 2008, DAMEPL had entered into a contract with DMRC for running the airport metro line till 2038.
As disputes arose between the parties, DAMEPL stopped operating the metro on the airport line and invoked the arbitration clause against DMRC alleging violation of contract and sought a termination fee. (ANI)