Requested funds from the Centre, Government of Delhi for payment of arbitral award to DAMEPL: DMRC to HC
The Delhi Metro Rail Corporation (DMRC) filed in the Delhi High Court on Monday that it has sought funds from the Center and the Government of Delhi for the payment of the balance of the arbitration award at Delhi Airport Metro Express Private Limited (DAMEPL).
The DMRC has said that if adverse orders are passed against it at this stage, millions of commuters will simply be told they cannot use the Delhi Metro. The High Court was hearing a claim from DAMEPL, who said the DMRC had only paid her Rs. bank accounts and fixed deposits. DAMEPL said interest continues to accrue until the date of actual payment by DMRC.
“If any of the prayers requested by the holder of the decree (DAMEPL) are granted by this court, at this point, the operations of the DMRC would come to a complete halt, which would be detrimental to the public interest, since approximately 48 lakh journeys take place daily on the DMRC maintained metro system in the NCR.
“DMRC has already offered an amount of approximately Rs 2,600 crore to the decree holder and expects an infusion of funds from its shareholders to satisfy the payment of the remaining amount of the arbitration award,” DMRC said in a statement. additional affidavit filed in high search.
Attorney General R Venkataramani, appearing for the DMRC, said that while it was important to comply with the decree to pay the award to DAMEPL, owned by Reliance Infrastructure, the concerns of Delhi Metro are equally important.
He argued that since the financial partners are applying their minds to the matter, it will be in the order of things that no adverse orders regarding the maintenance and operation of the Delhi Metro are passed by the High Court.
The court officer asked for a two-week period to submit the terms of payment to the DAMEPL to the court.
Justice V Kameswar Rao said: “The Attorney General of India declares that the case will be adjourned for two weeks to ensure that the judgment debtor (DMRC) submits to the court the modality of operation of the payment to the decree holder in terms of the sentence. List as of October 31. During the hearing, the Attorney General said: “Given the seriousness of the situation, namely that whatever is done with regard to the business and operations of the Delhi Metro will have serious consequences on its current operations, millions of commuters will simply be told that you cannot use Delhi Metro if an unfavorable order is placed against Delhi Metro at this stage.” The DMRC, in its affidavit, said after examined the offers received from various banks, it was considered by the Board of Directors at the meeting of September 21 that the company is under the shock of the financial crisis and that, if it continues to raise a loan, it will not will not be able to service the interest and repayment of the loan and could fall into a financial trap.
“The Board of Directors discussed the matter in detail and decided that the appropriate course of action would be for the company to ask both stakeholders / shareholders of the company to inject funds in equal proportions, so that the company continues to provide its current world-class services to its commuters,” he said.
He added that DMRC wrote a letter on September 9 to the Union Ministry of Housing and Urban Affairs as well as the Delhi government for the injection of funds to enable them to repay the amount due under the arbitration award of May 2017.
“Both governments are expected to respond based on their respective responsibilities under the 2017 Metro Policy. Therefore, any further direction regarding the execution of the decision will necessarily await the deliberations of both governments.” An effort will certainly be made to pursue the matter expeditiously,” the DMRC said.
Lead Solicitor Jaideep Gupta, representing DAMEPL, said the way the payments were to be made was fixed by the High Court in its earlier order, which was also upheld by the Supreme Court.
He argued that the case was dragging on and at each hearing a different position was taken on how the money would be paid.
He said one cannot threaten the courts that the public will be affected if orders are passed and that in a business case like this, his client’s interests are also very important.
The high court had granted the DMRC four weeks in September to make the payment remaining due under the arbitration award, failing which it will be “forced” to require the appearance of the director general of the DMRC.
On March 10, the High Court had ordered the DMRC to pay the arbitration award of more than Rs 4,600 crore plus interest to DAMEPL in two equal installments within two months. The first and second installments were due by April 30, 2022 and May 31, 2022, respectively.
The management had come to DAMEPL’s request for execution filed against the DMRC regarding the arbitration award rendered in its favor on May 11, 2017.
An arbitral tribunal had ruled in favor of DAMEPL, which had withdrawn from operating the Airport Express metro line for safety reasons, and had accepted its assertion that the operation of operations on the line was not not viable due to structural flaws in the viaduct through which the train would pass.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)