Today, On 7th April, In the DMRC-DAMEPL dispute, the Supreme Court said it will wait one week for a settlement. If not resolved, the Court warned, “law will take its own course” against the responsible party.
New Delhi: The Supreme Court granted a one-week extension for Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure, and Axis Bank to settle a dispute with the Delhi Metro Rail Corporation (DMRC) regarding a refund of approximately Rs.2,500 crore.
If a settlement is not reached by May 14, the court indicated that legal proceedings will continue.
Also Read: Supreme Court | Commercial Curative Petitions: In DMRC vs. DAMEPL Case
Senior advocate Abhishek Singhvi, representing Axis Bank, informed the court that settlement discussions are ongoing. He suggested that Attorney General R Venkataramani could mediate, in a non-official capacity, to expedite the resolution.
The court directed Venkataramani to gather contact information for the managing directors of DAMEPL, the involved banks, and other senior officials.
Highlighting the urgency for a resolution, the bench stated,
“We will wait for one week. If they settle the dispute, its fine otherwise the law will take its own course,”
This follows a previous Supreme Court directive on March 3, emphasizing the need to adhere to its prior verdict on the DMRC-DAMEPL dispute.
Also Read: Supreme Court Warns DAMEPL, Axis Bank: Comply with DMRC Dispute Order or Face Action
The court warned of potential coercive measures against officials from DAMEPL and Axis Bank if compliance was not met. Axis Bank argued that it was not initially a party to the dispute and only managed the escrow account.
However, the court maintained that Axis Bank was aware of the proceedings.
In December of the previous year, the Supreme Court issued contempt notices to the directors of DAMEPL and Axis Bank for failing to refund the Rs.2,500 crore to DMRC, as mandated by the court’s April 2024 verdict.
This order set-aside earlier rulings that had held DMRC liable for approximately Rs.8,000 crore based on a 2017 arbitral award.
The core of the dispute lies in the operation of the Airport Express Metro line in Delhi. DAMEPL terminated the concession agreement in 2012, citing structural defects, and sought a termination fee and associated costs through arbitration.
The Supreme Court’s April 2024 decision reversed its previous stance, deeming the earlier judgments a “grave miscarriage of injustice” to the public utility (DMRC). The court ordered DAMEPL to return DMRC’s deposit from the Axis Bank-managed escrow account.