homeinfrastructure NewsReliance Infra Delhi Metro case: SC gives Centre December 14 deadline for payment clarity of Rs 4,500 crore
Reliance Infra-Delhi Metro case: SC gives Centre December 14 deadline for payment clarity of Rs 4,500 crore
Earlier, the court had sent a notice to the DMRC regarding this, asking for a response by December 12. Similarly, the Delhi High Court had also given the DMRC till December 12 to come up with a strategy to refund the unpaid sum of an arbitral award in Delhi Airport Metro Express Pvt Ltd's (DAMEPL) favour. DAMEPL is an infrastructural division of Reliance.
The Supreme Court chastised the Centre on Monday for its failure to pay an arbitral award for Rs 4,500 crore following a lawsuit filed by Reliance Infra against Delhi Metro Rail Corporation (DMRC). The top court forewarns that in the event of noncompliance, it will take a "very serious view."
Earlier, the court had sent a notice to the DMRC regarding this, asking for a response by December 12. Similarly, the Delhi High Court had also given the DMRC till December 12 to come up with a strategy to refund the unpaid sum of an arbitral award in Delhi Airport Metro Express Pvt Ltd's (DAMEPL) favour. DAMEPL is an infrastructural division of Reliance.
Since the DMRC has already had enough time, the SC has declined to grant it four more weeks. Instead, the Centre has till December 14 to provide clarification on the Rs 4,500 crore payment.
Also read: DMRC to deposit Rs 1,000 crore in escrow account in arbitration case versus Reliance Infra
However, Reliance Infra has pushed for a payment timeline, claiming that in the absence of clarity, "someone has to go to jail." Additionally, the company also asked for an undertaking from the DMRC's managing director.
In March 2022, the Supreme Court maintained the DAMEPL's 2017 arbitration award, which totaled almost Rs 4,500 crore and was enforceable against the DMRC.
Despite the SC affirming the arbitral judgement, Reliance Infra alleged that the DMRC had not made the required payments.
The SC reprimanded the Centre, saying that while on one hand it promotes India as a centre for arbitration with grandiose speeches, on the other side it refuses to uphold arbitral awards upheld by the SC.
First Published: Dec 12, 2022 6:17 PM IST
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