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An arbitral tribunal has asked the Airports Authority of India (AAI) to refund monthly fees taken from Adani group-owned Mumbai International Airport Ltd (MIAL) during the Covid-affected period between March 2020 and February 2022.
MIAL, a stepdown subsidiary of Adani Enterprises Ltd (AEL), runs Mumbai airport, which is India’s second-busiest. MIAL had invoked arbitration against the AAI “seeking certain reliefs as eligible to it on account of the occurrence of force majeure event (Covid-19 period) under the Operation, Management and Development Agreement dated April 4, 2006”, AEL said in a statement.
“The arbitral tribunal has pronounced the award on 6th January 2024, the key aspects of the award being the following: the MIAL is excused from making payment of Monthly Annual Fee (“MAF”) for the period from 13th March 2020 to 28th February 2022 due to existence of force majeure,” it noted.
MIAL, a stepdown subsidiary of Adani Enterprises Ltd (AEL), runs Mumbai airport, which is India’s second-busiest. MIAL had invoked arbitration against the AAI “seeking certain reliefs as eligible to it on account of the occurrence of force majeure event (Covid-19 period) under the Operation, Management and Development Agreement dated April 4, 2006”, AEL said in a statement.
“The arbitral tribunal has pronounced the award on 6th January 2024, the key aspects of the award being the following: the MIAL is excused from making payment of Monthly Annual Fee (“MAF”) for the period from 13th March 2020 to 28th February 2022 due to existence of force majeure,” it noted.
“Accordingly, the amount of MAF paid by MIAL to AAI for the period 13th March 2020 to 28th February 2022 is ordered to be refunded along with interest,” it added.
There shall be extension of the term of OMDA for the period which is equivalent to period from 13th March, 2020 to 28th February, 2022, as per the order.
The award may be challenged by AAI within 3 months, in which case MIAL will appropriately defend the matter, AEL stated.
