Adani Enterprises Ltd (AEL) on Monday (January 8) said its step-down subsidiary, Mumbai International Airport Ltd (MIAL), has won the arbitration case against the Airports Authority of India (AAI).
The dispute revolved around certain reliefs sought by MIAL due to the impact of the force majeure event, namely the COVID-19 pandemic, as per the Operation, Management, and Development Agreement (OMDA) dated April 4, 2006. The arbitral tribunal, after careful consideration, pronounced the award on January 6, 2024, outlining key aspects that favour MIAL.
Firstly, MIAL is now excused from making payments of the monthly annual fee (MAF) for the substantial period between March 13, 2020, to February 28, 2022, citing the existence of force majeure. The tribunal has ordered the refund of the MAF amount paid by MIAL to AAI for this specified duration, along with accrued interest.
"MIAL is excused from making payment of Monthly Annual Fee (“MAF”) for the period from 13th March 2020 to 28th February 2022 due to the existence of force majeure. Accordingly, the amount of MAF paid by MIAL to AAI for the period 13th March 2020 to 28th February 2022 is ordered to be refunded along with interest," Adani Enterprises said in a regulatory filing.
Additionally, the OMDA's term is set to be extended for a period equivalent to the period between March 13, 2020, and February 28, 2022, providing MIAL with operational continuity.
However, the award may face a potential challenge from AAI within the next three months. In the event of a challenge, MIAL has committed to appropriately defending its position, Adani Enterprises has said.
Also Read: Gautam Adani overtakes Mukesh Ambani as India's richest man on Bloomberg's Billionaire Index
Shares of Adani Enterprises Ltd ended at ₹2,963.55, down by ₹43.15, or 1.44%, on the BSE.
