Team  SoOLEGAL

Delhi HC directs DMRC to pay Reliance Rs. 3,500 crore for Airport Express Case

Team SoOLEGAL 7 Mar 2018 8:41pm

Delhi HC directs  DMRC  to pay Reliance Rs. 3,500 crore for Airport Express Case

New Delhi:Justice Sanjeev Sachdeva  of the Delhi High Court upheld the arbitration award given against DMRC in airport express case and asked the Delhi Metro Rail Corporation (DMRC) to pay Rs. 3,502.62 crore to Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure Limited, an  Anil Dhirubhai Ambani Group company.

The HC verdict stated: “DAMEPL has sought direction for release of deposited amount to project lenders and promoters who had financed the project. The prayer is allowed... However, instead of depositing the said amount in court, the Delhi Metro is directed to deposit the amount along with interest, as awarded by the Arbitral Tribunal, directly with the project lenders. The said amount be deposited in the escrow account maintained with the project lenders, within a period of four weeks from March 6.”

The court also dismissed the DMRC’s plea challenging the Arbitral Tribunal’s May 2017 decision asking it to make payments to DAMEPL for breach of its obligations under the Concession Agreement to cure defects in the civil structure of the Airport Metro Line within the ‘cure period’.

The 23-km-long Airport Metro Express Line, which runs between New Delhi and Dwarka, started off as a Public Private Partnership between the Delhi Metro and DAMEPL.

The land was acquired by the DMRC and all basic civil structures were constructed by it. Balance systems such as track, signalling, electrification, and rolling stock were to be implemented by the private partner.

DAMEPL had said that during the course of operation of the project, it noticed various defects in the works performed by the Delhi Metro which severly affected its performance under the contract.The company terminated the contract as DMRC had not fixed the defects within 90 days of the notice issued by it.

Tagged: Delhi High Court   DMRC   DAMEPL   Arbitration  
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