Delhi High Court dismisses Delhi Metro’s plea for refund of Rs 678 crore paid to Reliance Infra lenders


DMRC had filed a reinstatement application in the Delhi HC in February 2019.

The Delhi High Court on Friday dismissed the reinstatement application of the Delhi Metro Rail Corporation (DMRC), seeking a refund of Rs. 678 crores were paid by the company to the lenders of Delhi Airport Metro Express Pvt Ltd. Ltd., (DAMEPL), a subsidiary of Reliance Infrastructure Limited, in 2018. A Division Bench of Justices Vipin Sanghi and Jasmeet Singh dismissed the DMRC’s plea.

“Learned counsel for the appellant submits that the Supreme Court has dismissed the review application filed in Civil Appeal No. 5628/2021 read with Civil Appeal No. 5627/2021 in respect of the order dated 09.09.2021. Consequently, this application is not alive. Accordingly, it is dismissed,” the court said.

This money was paid by DMRC to the lenders of Delhi Airport Metro Express Private Limited (DAMEPL) in accordance with the order of a single judge bench of the Delhi High Court, which had upheld the Rs. 47,00 crore arbitration award in favor of DAMEPL.

In January 2019, the Division Bench of the Delhi High Court, setting aside the arbitration award, allowed DMRC to file an appeal against the order of the Single Judge Bench of May 2018 and also allowed DMRC to seek refund of Rs. Was. 678.42 crores paid by the company from time to time to the lenders of DAMEPL,

To claim the refund, DMRC had filed a reinstatement application in the Delhi HC in February 2019. The Supreme Court recently upheld a 2017 arbitration award, which made the Delhi Metro Rail Corporation (DMRC) liable to pay damages of around Rs 2,800 crore, including interest, to Reliance Infrastructure Ltd.

The Reliance Infrastructure unit entered into a mutual contract with the Delhi Metro in 2008 to run the country’s first private city rail project by 2038. Due to disputes over fees and operations in 2012, Ambani’s firm ceased operations of the capital’s airport metro project and began an arbitration case. Alleging breach of contract against Delhi Metro and demanding termination fee.

The arbitration was challenged earlier in the Delhi High Court. Reliance Infra then challenged this decision of the two-judge bench of the Delhi High Court in the Supreme Court. The top court has now set aside the Delhi High Court order and asked the DMRC to honor the arbitral decision.

The Supreme Court has also ruled that this amount of Rs 2,800 crore will be returned to the company along with accrued interest over a period of eight years. This money will be given by Delhi Metro Rail Corporation Limited to Reliance Infrastructure.

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