HC to DMRC: Pay Rs 4,600 cr arbitral award to DAMEPL
New Delhi: The Delhi High Court Thursday directed the DMRC to pay over Rs 4,600 crore of arbitral award along with interest to Delhi Airport Metro Express Private Limited (DAMEPL) in two equal installments in two months.
The court said the first and second instalments shall be paid on or before April 30 and May 31 this year. The court's judgement came on DAMEPL's execution petition filed against DMRC concerning an arbitral award of over Rs 4,600 crore in its favour.
It said the May 11, 2017 arbitral award has attained finality and cannot be allowed to remain as a paper award and added that judgment debtor DMRC is duty bound to either divert its funds after seeking permission of the central government, if necessary, or raise loans to satisfy the award. Justice Suresh Kumar Kait noted that during pendency of these proceedings, the DMRC had made payment of Rs 1678.42 crore and even on the day order was reserved in the execution petition, DMRC's counsel had undertaken that Rs 600 crore shall be deposited in the ESCROW account.
The high court, in its 33-page judgement, noted that according to the DMRC affidavit, as on February 14, 2022, the total funds available with it under the head Total DMRC Funds' is Rs 1,452.10 crore; under the head Total Project Funds' is Rs 2,681.29 crore and under the head Total Other Funds' is Rs 1,560 crore.
However, as per details of funds in the January 10, 2022 affidavit of DMRC, Rs 514 crore is committed to the salary, medical and post retiral benefits of employees and Rs 114 crore is the portion of security deposit on smart cards, which is refundable to the commuters.
In the considered opinion of this court, the said amount, that is, Rs 514+ Rs 114 crore has to be kept aside for the aforesaid purpose, however, from the remaining amount available in different bank accounts of judgment debtor as well as under other heads, the payments towards decretal amount has to be made.
The award dated May 11, 2017 has attained finality and cannot be allowed to remain as a paper award, therefore, the judgment debtor is duty bound to either divert its funds shown to be available in different heads mentioned in the affidavit of February 14, 2022 after seeking permission of the central government, if necessary, or raise loans to satisfy the award, the court said and disposed of the execution petition.
The court directed that out of the funds available under the head Total DMRC Funds' of Rs 1,452.10 crore, DMRC is directed to keep aside amount of Rs 628 crore towards statutory expenses and from the remaining amount, part payment of decretal amount be made within two weeks and the remaining outstanding amount be paid in two instalments within two months.
