 "Law for enforcement of arbitral award no different for govt: SC to DMRC")
The Supreme Court on Wednesday said that the law for the enforcement of an arbitral award is no different for the government or its statutory corporations.
The apex court heard the case regarding the enforcement of an arbitration award of Rs 7,200 crore in favour of Delhi Airport Metro Express Pvt Ltd (DAMEPL). It had told the Attorney General in the last hearing on Monday that it will implead the Union of India if the dues are not paid.
DAMEPL is a subsidiary of Reliance Infrastructure.
A bench of Justices B R Gavai and Vikram Nath directed the single-judge bench of Delhi High Court, which is hearing DAMEPL's petition, to proceed with the execution of the award expeditiously and take it to its logical end as early as possible.
The matter has been posted for hearing in the Delhi High Court on December 22.
Reliance Infra had moved the Supreme Court on December 2 against Delhi Metro Rail Corporation (DMRC), seeking a payment of Rs 4,500 crore in arbitral award dues.
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The court had issued a notice to DMRC then and had sought a reply by December 12.
In the same matter, the Delhi High Court had also granted DMRC time till December 12 to come up with a plan to pay the outstanding amount of the arbitral award favouring DAMEPL.
Justice Gavai pointed out to Attorney General (AG) R Venkataramani, representing Delhi Metro Rail Corporation, that on one hand there are public speeches on making India an international arbitration hub and on the other, there is no enforcement of the award. “The award upheld by this court has to be followed,” the judge said.
The AG informed the court that Rs 2,700 crore had already been paid to DAMEPL. However, Senior Advocate Harish Salve, appearing for DAMEPL, informed the court that about Rs 4,500 crore remains unpaid.
Justice Vikram Nath then asked the AG for a tentative payment timeline. “Should we implead the Union of India,” the bench asked.
The Attorney General has then asked for four more weeks to make the payment.
Justice Gavai also pointed out to the AG that if he wants to make India an International arbitration hub then it has to start with him. “Mr Attorney General, this is contemptuous. The award is upheld by the top court. It is not expected from the Attorney General. Please do not do it again,” he said.
On September 9, 2021, the Supreme Court upheld DAMEPL’s 2017 arbitration award of roughly Rs 4,500 crore, which was enforceable against the DMRC. A bench of Justices L Nageswara Rao and B R Gavai said the hearing on the execution application cannot be postponed any longer because it is injurious to both parties interests.
After that, the matter was heard by the Delhi High Court.
Reliance Infra claimed that despite the SC upholding the arbitral award, the DMRC had failed to pay the dues.