Anil Ambani’s company Reliance Infrastructure will get Rs 4,500 crore from Delhi Metro.
keypoints:
- Relief to Anil Ambani’s company: Reliance Infra.
- Relief to Anil Ambani’s company: Reliance Infra wins case against Delhi Metro
- The case is linked to a 2008 agreement between Reliance Infrastructure and the DMRC.
Anil Ambani’s company Reliance Infrastructure will get Rs 4,500 crore from Delhi Metro (DMRC). The company had demanded termination fees of Rs 2,800 crore from Delhi Metro, alleging breach of contract. The DMRC initiated an arbitration process on it, after which the case went to court. Today, the Supreme Court upheld the company’s claim and ordered the DMRC to refund the amount, including interest and penalties.
The case is linked to
a deal struck in 2008 between Reliance Infrastructure and the DMRC. The two agreed to build the Delhi Airport Express on a Build Operate Transfer (BOT) basis. Reliance Infra accused Delhi Metro of breach of contract and demanded termination fees. The DMRC resorted to a clause attached to it to initiate arbitration in the matter.
An order issued against DMRC in 2017 An order was issued against DMRC in 2017 in the
Arbitration Tribunal case. The tribunal asked him to pay an arbitration award of Rs 2,800 crore along with interest and compensation. The tribunal’s order was upheld by a single-judge bench of the Delhi High Court in 2018 and asked the DMRC to pay compensation.
The company
will be able to repay the loan with the amount received from the DMRC. In 2019, a division bench of the Delhi High Court rejected the arbitration award granting relief to the DMRC. Reliance Infra challenged the Delhi High Court order in the Supreme Court. The company has been relieved by the Supreme Court order, as it will be able to repay the loan with the amount received from the DMRC. The Supreme Court order is very important for Anil Ambani as his telecom companies verge bankruptcy.
What is arbitration?
In the event of a dispute over an agreement, the aggrieved party resorted to an alternative dispute resolution (ADR) instead of going to court. In this, both parties argue before the arbitrator, a neutral third party, and the court can enforce its order.
