SC orders DMRC to pay Rs.2800 Crore to Reliance Infra in Arbitration matter

On Thursday, the Apex Court upheld Reliance Infrastructure’s Rs 2800 crore arbitral award, directing DMRC to pay damages of Rs 2800 crore plus interest to Reliance Infrastructure arm, the news agency reported.

As of Jan 2019, the total amount of damages including the interest stood at Rs 4,500.

The case pertains to a 2008 agreement between Reliance Infrastructure & DMRC for Delhi Airport Express on a Build–operate–transfer (BOT) basis. However, Reliance Infrastructure terminated the agreement in 2012.

DMRC invoked an arbitration clause seeking to initiate arbitration. In 2017, Arbitral Tribunal awarded damages to the Reliance Infrastructure arm & directed DMRC to pay Rs 2800 crore plus interest.

In 2018, a Single Judge Bench of the High Court of Delhi upheld the award & directed DMRC to pay damages.

However, in relief to DMRC, the Division Bench of Delhi HC set aside the arbitral award in 2019.

Reliance Infra then moved Top Court to challenge the High Court of Delhi decision to set aside the arbitral award.

Following the report, shares of Reliance Infra hit 5% upper circuit.

The stock was trading at Rs 74.15, up Rs 3.50, or 4.95%. It has touched an intraday high of Rs 74.15 & an intraday low of Rs 71.30. There were pending buy orders of 938,284 shares, with no sellers available.

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