SC Sets Aside Arbitral Award in Ambani Case

11 Apr 2024 CW Team

In a setback for Anil Ambani, the Supreme Court has overturned an arbitral award favouring a Reliance Infrastructure subsidiary. The decision marks a significant development in the legal battle between Anil Ambani's companies and Reliance Infrastructure.

The arbitration award in question pertained to a dispute between Reliance Infrastructure and Delhi Metro Rail Corporation (DMRC) over the Delhi Airport Metro Express Line project. An arbitral tribunal had previously ruled in favour of Reliance Infrastructure, awarding it damages of over Rs 48 billion.

However, the Supreme Court has now set aside this award, citing procedural irregularities and violation of principles of natural justice. The court found that the arbitral tribunal had failed to give Anil Ambani's companies a fair opportunity to present their case and defend their interests.

The ruling represents a significant setback for Anil Ambani's business interests, as it nullifies a substantial financial claim against DMRC. It also underscores the importance of adherence to due process and procedural fairness in arbitration proceedings.

The Supreme Court's decision is likely to have broader implications for arbitration jurisprudence in India, particularly in cases involving large-scale infrastructure projects and disputes between corporate entities. It reaffirms the judiciary's commitment to upholding principles of fairness and transparency in dispute resolution.

Overall, the overturning of the arbitral award represents a significant legal victory for DMRC and underscores the importance of procedural integrity in arbitration proceedings. It also highlights the challenges faced by businesses in navigating complex legal disputes in India's evolving regulatory landscape.

Infrastructure Transport

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