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Notes On Damepl V DMRC

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Notes On Damepl V DMRC

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21bba030
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NOTES ON DELHI AIRPORT METRO EXPRESS PRIVATE LTD V DMRC

2017: DMRC was directed to pay approximately INR 2782.33 Crore along with the interest
to Delhi Metro Express Pvt Ltd (DAMEPL) in an arbitral award.
2018: DMRC challenged the Arbitral award in the Delhi High Court u/s 34 of Arbitration Act.
The High Court dismissed DMRC’s challenge. An appeal u/s 37 was partly allowed in 2019,
setting aside a portion of the Arbitral award.
“The appeal is accordingly partly allowed setting aside the award in the terms indicated
above with liberty to the parties to invoke arbitration clause for fresh adjudication on their
claims and counter claims. Liberty is also granted to the DMRC to move an application for
restitution and both parties to move applications under the A & C Act. In the facts of the
case, there would be no order as to costs.”
DAMEPL appealed against the 2019 judgment and the Supreme Court upheld the Arbitral
award and set aside the 2019 judgment. DMRC’s review petition against this decision was
also dismissed.
2021- 2022: DAMEPL moved to Supreme court on Dec 2022 for the execution of the Arbitral
award upheld the Delhi HC. The court ordered DMRC to fulfil its payment obligations to
DAMEPL.
During execution proceedings, DMRC faced reduced funds due to Union govt’s decision.
High Court impleaded Union govt and GNCTD (Govt of NCT Delhi). The court held that the
corporate veil can be lifted in public interest or enforcement of legal obligations.
Supreme Court gave DMRC three months to pay dues and sent the matter back to Delhi High
Court for disposal.
“52. The Tribunal awarded interest in accordance with the terms of the Concession Agreement on
termination payment. DMRC contended before the High Court that the award in respect of interest
had to be set aside on the ground that it would result in unjust enrichment. After a thorough
consideration of Article 29.8 and Article 36.2.6.1 of the Concession Agreement, the High Court has
rightly refused to interfere with the findings by the Tribunal relating to interest and we see no cause
for interference.

1
53. For the aforementioned reasons, the appeal filed by DAMEPL is allowed and the judgment of

the Division Bench of the High Court is set aside. The appeal arising out of SLP (C) No. 8311 of 2019
filed by DMRC is dismissed.”

2023: Delhi HC concluded that Union govt and GNCTD being principal shareholders
exercising control over DMRC cannot hide behind corporate veil and they were directed to
assist DMRC in repaying the Arbitral award.
2023: Both Union govt and GNCTD challenged the High Court decisions in the Supreme
court.
Aug 2023: Supreme Court has stayed the execution proceedings initiated by DAMEPL, the
stay is granted till it hears the curative petition of DMRC. DMRC had moved a curative
petition asking the apex court to reconsider its 2021 order upholding the arbitral award in
DAMEPL favour.

The Execution Proceedings Before the Delhi High Court Shall Stand Deferred Until the
Disposal Of The Curative Petition, The Court Said.

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