SC to Hear DMRC Plea Against DAMEPL Award

09 Feb 2024 CW Team

The Supreme Court of India has scheduled a hearing on February 15 for the curative petition filed by the Delhi Metro Rail Corporation (DMRC) against an arbitral award favoring Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure.

This petition challenges the dismissal of DMRC's earlier plea by the top court in September 2021. The case revolves around an arbitral award directing DMRC to pay over Rs.8,000 crore to DAMEPL.

The dispute stems from DMRC's cancellation of a contract with DAMEPL in 2012 due to safety concerns, including numerous cracks and twists in the structure supporting the Airport Metro Express line.

The arbitral tribunal found DMRC in breach of the concession agreement, leading to the substantial award in favor of DAMEPL.

The Delhi High Court had previously directed DMRC to comply with the award, but the Supreme Court's decision to hear the curative petition has deferred these proceedings.

The outcome of this hearing could significantly impact DMRC's financial obligations and the precedent for arbitral awards in India.

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