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A single judge bench of Justice Suresh Kumar Kait of the Delhi High Court today directed Delhi Metro Rail Corporation (DMRC) to pay Rs. 927 cr to Reliance Infrastructure's arm Delhi Airport Metro Express Pvt Ltd (DAMEPL) in 2 weeks in execution of a Rs. 7,000 crore arbitral award in favour of DAMEPL. The Court said that the arbitral award in favour of DAMEPL which was upheld by the Supreme Court too "cannot be treated as a paper decree" by DMRC.

The Court has further directed for the remainder of the payable amount to be paid in 2 equal instalments - with one instalment to be paid by April 20, another by May 31.

In response to DMRC's various affidavits stating that it does not have sufficient funds to clear the award feasibly, the Court told DMRC that it would be free to take the Centre's nod to take loans to pay the arbitral award amount.

A detailed order is awaited.

Earlier the Court had directed the Delhi Metro Rail Corporation (DMRC) to submit its balance sheet for the year 2021, along with details of its bank accounts and fixed deposits, upon its submission that it does not have enough funds to pay the Rs. 7,000 crore arbitration award in favour of Anil Ambani-owned Reliance Infra's DAMEPL.

Sr. Adv. Parag Tripathi had argued on behalf of DMRC that they have nearly Rs. 6,000 crore in their various accounts, however, the same is meant for Metro projects in Delhi, Patna and Maharashtra.

Tripathi had also disputed DAMEPL’s claim of Rs. 7,000 crore dues and submitted that they only owe a little more than Rs. 3,000 crore.

Sr. Adv. Rakesh Kumar Khanna for DAMEPL on the other hand, had submitted that DMRC is owned by the central government and it cannot be accepted that the government does not have the money to pay the arbitration award.

He further said that DMRC has huge assets including equity share capital of around ₹19,500 crores and, therefore, the money can be easily paid.

DMRC had informed the Delhi High Court in an affidavit that as per the Court's prior directions it has deposited Rs 1,000 crore in an escrow account against an arbitral award of Rs. 7,000 cr in favour of Reliance Infrastructure-owned DAMEPL. The Court had then directed the Corporation to state the funds available with it in its accounts outside Delhi within a week.

Meanwhile, DMRC had informed Court on affidavit that total funds worth Rs 5800.93 crore were available with them, as on December 17.

DAMEPL had also told Court that there can be no selective treatment given with respect to payment of the decree amount merely because the judgment debtor was the Government.

It had further declined the Government's offer to deal with DAMEPL's financial creditors directly, stating that the banks were not ready for the same, but want money to go directly to DAMEPL rather than it being deposited in banks in discharge of their dues.

DAMEPL had added that the company itself was bankrupt and not in a position to let go of the funds.

Solicitor General Tushar Mehta's insistence for an affidavit to this effect was declined by DAMEPL's counsel stating that it cannot give any affidavit merely because the Solicitor wants it to.

Mehta too had appeared for DMRC in the matter.

Cause Title: Delhi Airport Metro Express Private Limited vs Delhi Metro Rail Corporation