The Supreme Court overturns its 2021 ruling directing the Delhi Metro Rail Corporation (DMRC) to pay an arbitral award to Reliance Infrastructure’s subsidiary, DAMEPL, in the Delhi Airport Metro Express case, marking a significant relief for DMRC. A bench comprising Chief Justice DY Chandrachud and Justices BR Gavai and Surya Kant quashes the previous judgment, ordering the refund of any amount deposited by DMRC and deeming the arbitral award as suffering from perversity and patent illegality.
The Supreme Court acknowledges that its earlier interference with the High Court’s decision resulted in a miscarriage of justice, recognizing the division bench’s rationale behind rejecting the arbitral award due to its illegality and unfair burden on a public utility.
Legal Proceedings
Reliance Infra, owned by Anil Ambani, contested the High Court’s decision, leading to a series of legal battles culminating in the Supreme Court’s reversal of the arbitral award restoration in 2021. Despite DMRC’s unsuccessful plea for review, a subsequent curative petition prompted the latest verdict.
The award amount, with interest, had surged to approximately Rs 8,000 crore, underscoring the significant financial implications of the case for both parties involved.
The Supreme Court’s decision brings closure to a protracted legal dispute, providing clarity and relief to DMRC while highlighting the importance of upholding legal integrity and fairness in arbitration proceedings.
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