Supreme Court Grants DMRC's Curative Petition, Directs Reliance Infrastructure to Refund ₹8,000 Crore

10 Apr 2024 , 03:40 PM

The Supreme Court granted permission for a curative petition filed by Delhi Metro Rail Corporation (DMRC), instructing Reliance Infrastructure to refund ₹8,000 Crore paid to its subsidiary, Delhi Airport Metro Express Private Limited (DAMEPL).

DMRC challenged the arbitral award that directed payment to the Reliance Infrastructure subsidiary through the curative petition.

The apex court ruled for the refund of the amount paid by DMRC, highlighting a judicial error that led to a miscarriage of justice. Following the court’s decision, Reliance Infrastructure shares plunged by 20%.

DMRC filed the curative petition against a two-judge bench order of the Supreme Court that upheld the validity of the arbitral award in favor of DAMEPL. A division bench of the Delhi High Court had previously set aside the award.

The case originates from a 2008 agreement between Reliance Infrastructure and DMRC for the Delhi Airport Express on a build–operate–transfer (BOT) basis. However, Reliance Infrastructure terminated the agreement in 2012, leading to DMRC invoking arbitration.

In 2017, the arbitral tribunal awarded damages to Reliance Infrastructure, directing DMRC to pay ₹2,800 Crore plus interest. A single-judge bench of the Delhi High Court in 2018 upheld the award and ordered DMRC to pay damages.

Reliance Infrastructure Limited (R-Infra), part of the Reliance Anil Dhirubhai Ambani Group, operates in power generation, infrastructure, construction, and defence sectors. The corporate headquarters is located in Navi Mumbai, and the company holds interests in power plants, metro rail, airports, bridges, toll roads, and defence, with substantial stakes in Reliance Power and Reliance Naval and Engineering Limited.

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