Delhi Metro files contempt plea in SC vs RInfra arm for not refunding money
This story was originally published at 13:30 IST on 14 November 2024
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NEW DELHI – Delhi Metro Rail Corp. has filed a contempt petition in the Supreme Court against Delhi Airport Metro Express Pvt. Ltd., a subsidiary of Reliance Infrastructure Ltd., Delhi Airport Metro Express' managing director and AXIS Bank for not refunding INR 25.99 billion, along with interest, arising out of the court's direction in an arbitration case. The apex court was supposed to hear the case on Thursday. However, Justice K.V. Viswanathan recused himself from the hearing.
Delhi Metro asked the court to direct Delhi Airport Metro and AXIS Bank to refund INR 25.99 billion, along with interest amounting to INR 19.35 billion, and a further interest of 2% on INR 25.99 billion till the actual date of deposit. Delhi Metro asked the top court to initiate and hold in contempt the respondents for wilfully disobeying the court's directions in a verdict passed on Apr. 10.
In 2017, Delhi Airport Metro Express won an INR 45-billion arbitration award against Delhi Metro Rail Corp. The arbitral tribunal accepted Delhi Airport Metro's claim that running trains on the airport line wasn't viable due to structural defects in the viaduct made by Delhi Metro Rail. In September 2021, the top court upheld the arbitral award.
In the meantime, Delhi High Court asked Delhi Metro to deposit some part of the arbitral award and money due to lenders of Delhi Airport Metro in an escrow account. This account was maintained by AXIS Bank both as the escrow agent and the lender's representative of the consortium of bankers that had lent to Delhi Airport Metro.
In November 2021, the apex court dismissed a review petition filed by Delhi Metro in the case. In August 2022, Delhi Metro filed a curative petition in the Supreme Court against the arbitral award. On Apr. 10, the apex court allowed Delhi Metro’s curative plea and set aside the arbitral award passed in favour of Delhi Airport Metro. The apex court directed that all the money deposited by Delhi Metro should be refunded to it.
Consequently, Delhi Metro wrote a letter to AXIS Bank and Delhi Airport Metro, seeking a refund of the amount. In May, Delhi Airport Metro said it had forwarded the letter to its lenders who have withdrawn or received the given amounts. AXIS Bank said it was examining relevant documents and sought time to respond. However, no amount was refunded to the petitioner, said Delhi Metro.
At 1154 IST, shares of Reliance Infrastructure Ltd. were up 2.9% at INR 256.85 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Namrata Rao
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