The Delhi High Court on March 17 directed the Centre and the Delhi government to take cognisance of the Delhi Metro Rail Corporation (DMRC) request for extending sovereign guarantees or subordinate debt to help it clear the dues of an arbitral award passed in favour of Reliance Infrastructure-owned Delhi Airport Metro Express Private Limited.
The HC verdict came on an execution petition filed by DAMEPL against DMRC over the payment of dues of an arbitral award passed in its favour.
DMRC had said that it has no funds and despite efforts, the two stakeholders -- the Centre and the Delhi government -- have been unable to arrive at a consensus on the ways and means by which the amount payable under the award may be liquidated.
Now, the Delhi HC has said that the Union government and Delhi government must decide on DMRC's request for a sovereign guarantee to pay Rs 4,800 crore arbitral dues within two weeks. If permission is granted, DMRC shall pay the entire amount to Reliance Infra within one month. If it is refused, the Centre shall repatriate all the funds received by it from DMRC post-March 10, 2022.
“The Union Ministry of Housing and Urban Affairs and the Delhi government will have to take the final decision within two weeks,” the High Court order stated. It added: “If permission is accorded to the DMRC, it will have to deposit the entire amount payable under the arbitration award along with up-to-date interest within one month.”
Upon receipt of money from the Centre, DMRC shall deposit arbitral award dues with interest in escrow. In case of failure, the entire amount payable to DMRC shall stand attached without reference to the courts. If DMRC fails to pay, Delhi HC will take further action against the Centre, and Delhi government.
Reading out the judgment, Justice Yashwant Varma said: “If the Union ministry or Delhi government decline the request for providing sovereign guarantees or subordinate debt, the Union ministry shall forthwith or at the end of two weeks revert and repatriate all monies received by it from DMRC post-March 10, 2022, so as to ensure that the credit balance of the DMRC, total project and total other funds reflect the balance as it existed on March 10, 2022.”
"In case of a failure on the part of the parties to proceed in terms of the above directions, the entire amount standing to the credit of DMRC, total project and total other funds as of today shall stand attached forthwith without reference to the court," the judge said.
(With PTI inputs)
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