SC upholds award of arbitration against DMRC

Delhi Metro asked RInfra to pay ₹2,782 crore.

The Supreme Court on Thursday granted the Delhi Metro Rail Corporation the order of Delhi Airport Metro Express Pvt. Ltd. (DAMEPL), promoted by Reliance Infrastructure in connection with the Airport Metro Express Line (AMEL) project.

The metro line extends for 22.7 km from New Delhi Railway Station to Dwarka Sector 21 via Indira Gandhi International Airport.

The Arbitral Tribunal concluded that there were 1,551 cracks in 367 girders, i.e. 72% of the girders were affected by such cracks.

However, when the matter went to the Delhi High Court in appeal, a Division Bench set aside the order of the Tribunal. Thereafter DAMEPL moved the apex court.

The main question before the top court was whether the division bench was “right” to interfere with the order of the arbitral tribunal.

While setting aside the Division Bench’s decision, an SC Bench held that the High Courts cannot routinely interfere with the awards of the Arbitral Tribunal.

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