Delhi HC Grants Time To DMRC To Pay Remaining Arbitral Amount To DAMEPL

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The on Monday granted time to Rail Corporation till August 5, after noting that it has called for a proposal from banks for the loan so that it can pay the remaining Arbitral Award amount to Delhi Airport Metro Express Private Limited (DAMEPL).

Justice V Kameswar Rao granted time to after hearing the submission of the application moved by DAMEPL seeking enforcement of the arbitration award of May 11, 2017. Now the matter has been listed for August 16 for further hearing.

DMRC's Counsel told the bench that it expects to process the bids of the banks by July 10 and sign the loan documents by August 15.

The bench after noting the submission granted time to and directed it to comply with the direction on or before August 5. The bench also called for an affidavit mentioning the break up of the payments to DAMEPL within one week after complying with the direction.

On March 10, the High Court had directed to pay the entire arbitration amount of Rs 4600 crore along with the interest in two equal instalments in two months. The Supreme Court upheld the order on May 5.

DAMPEL in the present petition has stated that even after the direction of the High Court DMRC has made a payment of Rs 166.44 crore out of the total arbitral amount. It claimed that Rs 4427.41 crores are still outstanding. Therefore the bank accounts and other such assets should be attached.

The arbitration award was based on an agreement between the DMRC and DAMPEL in 2008 to develop and operate the orange line of the connecting the Indira Gandhi International Airport's Terminal-3 to Sector 21 Dwarka.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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