The Delhi high court on Friday asked Delhi Metro Rail Corporation’s (DMRC’s) stakeholders government of national capital territory (GNCTD) and Union ministry of housing and urban affairs (MoHUA) to be impleaded in the matter pertaining to the payment of an arbitral award dues owed to Reliance Infrastructure.
A bench led by Justice Yashwant Varma ruled: “In the affidavit submitted before the court, it has been stated that despite requisite efforts that have extended, the two stakeholders have been unable to come at a consensus of the ways and means in which the amounts payable under the award may be liquidated."
“Undisputedly, the Ministry of Housing, GNCTD are the stakeholders of the respondent (DMRC). It would thus be warranted that the stakeholders being formally placed on notice and are invited to make submissions before this court," the court said.
The two stakeholders of DMRC have been asked to be present by Monday before the Delhi court.
The high court is hearing the matter pertaining to the enforcement of an arbitration award of ₹7,200 crore in favour of the DAMEPL. Of the total amount due, DMRC has already paid up ₹2,600 crore. It now owes ₹4,500 crore to DAMEPL.
While arguing the matter, senior counsel Kapil Sibal, appearing for Reliance Infrastructure, said the court must take into consideration the case of Bhatia Industries vs Asian Natural Resources decided upon by the Bombay high court, which said that the court would be justified in lifting the corporate veil of the respondent corporation (DMRC) and proceeding further against the stakeholders for the purposes of the execution of the award.
Sibal even brought to the court’s notice the Supreme Court order dated 14 December, which directed the Delhi high court to take up the case pertaining to the enforcement of ₹4,500 crore arbitration award in favour of Delhi Airport Metro Express Pvt. Ltd, while asking the court to take the case to its logical end in accordance with the law, within three months.
R. Venkatramani, attorney general of India, responding to Sibal’s arguments said that our endeavour has been to ensure that the execution proceedings come to a culmination. He suggested that one of the ways to resolve the matter was to ask GNCTD and MoHUA to be present and ask them how would they proceed in the matter. Adding that issues such as if the stakeholders are liable to pay the dues will arise.
Further, the court said the burden of execution should not be put on the courts. “We will have to find ways to recover the money," justice Varma said.
On 31 January, the attorney general had informed the court that seeking an interest-free subordinate debt was a one final recourse that can be pursued before the court can look at any other options for getting the decree executed. He added that there are chances the last-minute effort to seek the subordinate debt from the government may fructify.
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