look news india
The troubles of veteran businessman Anil Ambani are not showing signs of diminishing. The Supreme Court has given relief to DMRC in the 12 year old case related to Delhi Metro. The arbitration tribunal ruled in favor of Delhi Airport Metro Express Pvt Ltd (DAMEPL), the metro arm of Anil Ambani-owned Reliance Infrastructure. In this case, DMRC was asked to pay Rs 8,000 crore to DAMEPL. But the Supreme Court has given relief to DMRC. The Supreme Court upheld the decision of the Division Bench of the High Court. The High Court in its judgment said the arbitral award against Delhi Metro Rail Corporation (DMRC) suffers from patent illegality.
A bench headed by Chief Justice DY Chandrachud said the amount deposited by DMRC will be returned. Any amount paid by the applicant will be refunded as part of the enforcement proceedings. DMRC and DAMEPL signed an agreement in 2008 to design, install, commission, operate and maintain the Airport Metro Express Line from New Delhi Railway Station to Sector 21 Dwarka for 30 years. DMRC built all the civil structures while the system work was with DAMEPL. After some defects were found in the viaduct in July, 2012, DAMEPL suspended operations and issued a notice to DMRC to fix the problem.
What is the whole matter?
DAMEPL gave notice of termination in October-201. Authorities inspected the line in November 2012 and gave permission to resume operations in January 2013. DAMEPL resumed operations but abandoned the project within five months in June 2013. DMRC resorted to arbitration clause. The arbitration tribunal ruled in favor of DAMEPL and asked DMRC to pay Rs 2,782.33 crore in 2017. DMRC challenged this in Delhi High Court but the single bench rejected its petition. But the bench set aside the arbitration award saying it was against the public policy of India.
