Anil Ambani's Reliance Infrastructure suffered a setback on Wednesday as the Supreme Court set aside a Rs 8,000 crore arbitral award granted in favour of its arm Delhi Airport Metro Express Pvt (DAMEPL). The apex court has asked DAMEPL to refund any amount submitted by Delhi Metro Rail Corp (DMRC).
The case pertains to an agreement between the two firms signed in 2008. As per the agreement, the two companies were supposed to design, install, operate and maintain the airport express line in Delhi over a period of 30 years.
DAMEPL suspended the operations in 2012 after finding defects in the viaduct under the purview of DMRC. The formed served a termination notice in October 2012. After investigation and subsequent clearance of the line's infrastructure, the project was started again in 2013 but DAMEPL stopped work within five months.
DMRC invoked the arbitration clause following this development. However, in 2017, the arbitral tribunal ruled in favour of Anil Ambani's firm and asked DMRC to pay Rs 2,782 crore with interest.
But a division bench of the same court provided relief to the firm and set aside the award. Anil Ambani's firm took the case to the apex court. The Supreme Court initially ruled that the arbitral award ruling was in line with the law and overturned Delhi High Court's division bench order.
However, following a curative petition filed by DMRC, the SC upheld the division bench order on Wednesday. The bench led by Chief Justice of India DY Chandrachud said that all amount submitted by DMRC shall be refunded. DMRC had paid Rs 3,300 crore to the Reliance Infra arm, which now needs to be refunded.
Anil Ambani's Reliance Infrastructure Ltd in a stock exchange filing that no liability has been imposed on it by the Supreme Court order.
"Reliance Infrastructure wishes to clarify that the Order dated April 10, 2024, passed by the 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," it said.
While DAMEPL is a subsidiary of Reliance Infrastructure, it is a separate entity and the liability falls on it.
(With inputs from PTI)
