Anil Ambani’s company wins Rs 4,600 crore arbitration award against DMRC
The Supreme Court on Thursday upheld an arbitration award of over Rs 4,600 crore in favor of Anil Ambani Group firm, Delhi Airport Metro Express Pvt Ltd (DAMEPL), which is enforceable against the Delhi Metro Rail Corporation.
A bench headed by Justice L Nageswara Rao set aside the order of the Delhi High Court setting aside the arbitration award in favor of DAMEPL, which withdrew from running the Airport Express Metro line over security issues.
According to the latest annual report by Reliance Infrastructure, the award is worth around USD 632 million (over Rs 4,600 crore) including interest.
The arbitral tribunal in its May 2017 judgment had accepted the claim of the airport’s metro operator that conducting operations on the line was not feasible due to reasons such as structural defects.
DAMEPL will use the money to make payments to the lenders, as per the submissions of its lawyers during the hearing in the matter. DAMEPL, in 2008, entered into a contract with DMRC to run the Airport Metro Line till 2038.
As soon as a dispute arose between the parties, DAMEPL stopped operating the Metro on the airport line and invoked the arbitration clause against DMRC alleging breach of contract and demanding termination fee.
Read more: Future-Reliance Retail Deal: SC stays Delhi HC’s order to confiscate Future Group assets
Read more: Anil Ambani’s debt-ridden Reliance Infrastructure sells Santacruz Center to Yes Bank
.