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Relief for DMRC
RAILWAYS & METRO RAIL

Relief for DMRC

Vikas Kumar, Managing Director, Delhi Metro Rail Corporation (DMRC), must be a relieved man! DMRC will not have to pay Rs.76.87 billion to Delhi Airport Metro Express (DAMEPL), an Anil Ambani-owned Reliance Infrastructure company, after the Supreme Court decided to grant it relief through a cur...

Vikas Kumar, Managing Director, Delhi Metro Rail Corporation (DMRC), must be a relieved man! DMRC will not have to pay Rs.76.87 billion to Delhi Airport Metro Express (DAMEPL), an Anil Ambani-owned Reliance Infrastructure company, after the Supreme Court decided to grant it relief through a curative petition, which is significant for its implications on PPPs, investor confidence and the legal system. It highlights the court's commitment to justice and sets a precedent for future disputes in similar projects. The Supreme Court quashed an arbitral tribunal award directing DMRC to pay the amount to DAMEPL, an SPV of Reliance and Spain鈥檚 Construcciones Auxiliar de Ferrocarriles. A three-judge bench led by Chief Justice of India (CJI) DY Chandrachud exercised the apex court鈥檚 rare powers under Article 142 of the Constitution in a curative petition filed by DMRC to lift the 鈥渆xorbitant鈥� liability off the public utility鈥檚 shoulders. The CJI said DMRC had suffered a 鈥済rave miscarriage of justice鈥�. The Court observed, 鈥淭he process of arbitration was perverted by the arbitral tribunal to provide an undeserved windfall to DAMEPL.鈥�

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