New Delhi, Feb 27 (IANS) The Delhi High Court on Monday directed the Centre to decide whether it proposes to give sanction for the attachment of movable and immovable assets of Delhi Metro Rail Corporation (DMRC) for repaying its unpaid arbitral award to Delhi Airport Metro Express Private Ltd (DAMEPL), owned by Reliance Infrastructure.
A single-judge bench of Justice Yashwant Varma granted time to Centre to place on record its decision.
“…Before the court proceeds to rule on the issue of whether the circumstances warrant the corporate veil of the DMRC be lifted, it would appear expedient to call upon the Union government to take a decision on whether it proposes to accord sanction for the attachment of the movable and immovable assets of the corporation for the purpose of the satisfaction of the amount payable under the award,” it said.
The court listed the matter for the next hearing on March 2.
The HC on February 17 issued a notice to the Centre and the Delhi government in the case.
Justice Varma had initiated proceedings against the Ministry of Housing and Urban Affairs and the Delhi government in DAMEPL’s petition seeking enforcement of the arbitration award dated May 11, 2017.
“Undisputedly, the two essential stakeholders in this case are Ministry of Housing and Urban Affairs and the Government of National Capital Territory Of Delhi (GNCTD). The ends of justice would thus warrant that the said stakeholders be placed formally on notice and invited to make submission for the means to make payment of arbitral award to the execution petitioner.”
An amount of Rs 1,678.42 crore of the arbitral award has already been paid and Rs 6,330.96 crore is yet to be paid by DMRC.
Attorney General R. Venkataramani had on January 31 told the high court that if the Centre agrees to an interest-free subordinate debt on behalf of the DMRC to pay Reliance Infra, the Delhi government will follow suit.
Earlier in January this year, DMRC had informed the court that it has requested the Centre and Delhi government for interest-free subordinate debt of Rs 3,565.64 crore from each for repaying DAMEPL.
–IANS
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