SC rules DMRC not obliged to pay Reliance Infra unit, company says 'not received any money'

Rs 8,000-crore relief to Delhi Metro as Supreme Court allows DMRC's curative petition against arbitral award in favour of DAMEPL

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In a significant ruling, the Supreme Court has allowed a curative petition filed by Delhi Metro Rail Corporation, stating that DMRC is not obliged to pay Rs 8,000 crore to Reliance Infrastructure's subsidiary Delhi Airport Metro Express Private Limited (DAMEPL). DMRC had filed the curative petition challenging the arbitral award that had directed it to pay to the Reliance Infrastructure subsidiary.

The apex court has ordered the amount paid by DMRC to refunded and stated that the court made an error of judgement in interfering with the division bench order, causing grave miscarriage of justice.

Shortly after the court ruling, shares of Reliance Infrastructure slipped by 20 percent to hit the lower circuit. However, the company informed stock exchanges in a press release that the Supreme Court order does not imply any liability, and it has not received any money from DMRC or its subsidiary. "Reliance Infrastructure wishes to clarify that the Order dated April 10, 2024 passed by the Hon’ble Supreme Court does not impose any liability on the Company and the Company has not received any money from DMRC / DAMEPL under the arbitral award", the statement said.

DMRC had filed a curative petition against a two-judge bench order of the supreme court, which had upheld the validity of the arbitral award in DAMEPL. A division bench of the Delhi High Court had set aside the award.

The case pertains to a 2008 agreement between Reliance Infrastructure and DMRC for Delhi Airport Express on a build–operate–transfer (BOT) basis. However, Reliance Infrastructure terminated the agreement in 2012. Subequently, DMRC invoked a clause seeking to initiate arbitration and in 2017, the arbitral tribunal awarded damages to the Reliance Infrastructure arm, directing DMRC to pay Rs 2,800 crore plus interest.

In 2018, a single-judge bench of the Delhi High Court upheld the award and directed DMRC to pay damages.