In a landmark ruling, on Wednesday the Supreme Court of India overturned a significant ₹2,800 crore arbitral award in favor of the Anil Ambani firm, Delhi Airport Metro Express Pvt Ltd (DAMEPL), against the Delhi Metro Rail Corporation (DMRC). 

The dispute centers around the operations and maintenance of the Delhi Airport Express Line, sparking a legal battle that has seen twists and turns through various judicial stages.

A bench comprising Chief Justice of India DY Chandrachud along with Justices BR Gavai and Surya Kant granted the curative petition filed by DMRC, challenging a previous judgment from September 2021 by the top court that had upheld the arbitral award. This decision effectively reinstates a Division Bench ruling of the Delhi High Court, which had favored DMRC prior to the Supreme Court's intervention in 2021.

The Supreme Court's order includes the refund of amounts deposited by DAMEPL and any payments made under coercive measures, highlighting a significant shift in the legal standing of the case. The court emphasized that its curative powers should not create a floodgate of similar challenges but noted the unique circumstances that led to its intervention in this instance.

The genesis of the dispute dates back to a 2008 concession agreement between DAMEPL and DMRC for the Delhi Airport Express Line, structured on a Build-Operate-Transfer (BOT) basis. DAMEPL terminated the agreement in 2012, citing structural defects in the metro line allegedly unaddressed by DMRC despite notifications.

The crux of the case revolved around the validity of DAMEPL's termination notice, with DMRC asserting its compliance with contractual obligations. An arbitration tribunal, convened as per the concession agreement, awarded damages amounting to ₹2,800 crore plus interest in favor of DAMEPL in 2017.

Legal proceedings ensued with conflicting judgments. While a single-judge bench of the Delhi High Court initially upheld the arbitral award in 2018, a subsequent Division Bench overturned this decision on appeal, leading to the Supreme Court's involvement and the subsequent reversal of the High Court's ruling.

Senior Advocates Mukul Rohatgi, Harish Salve, Kapil Sibal, JJ Bhatt, and Prateek Seksaria, among others, appeared for DAMEPL, while Attorney General R Venkataramani, Senior Advocates KK Venugopal, Parag Tripathi, Maninder Singh and others represented DMRC.

Case: Delhi Metro Rail Corporation Ltd. vs. Delhi Airport Metro Express Pvt. Ltd,

Curative Petition (C) Nos.108-109 of 2022 In Review Petition (C) Nos.1158-1159 of 2021 In Civil Appeal Nos 5627-5628 of 2021.

Click to read/download judgment.