In a significant legal development, the Supreme Court has overturned its 2021 judgment, relieving the Delhi Metro Rail Corporation (DMRC) of a staggering liability amounting to approximately Rs 8000 crores. The ruling comes as a relief to the DMRC, overturning a previous arbitral award in favor of the Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure.
Issue:
The central issue revolved around the validity of the arbitral award against DMRC and the subsequent judicial intervention.
Rule:
The Supreme Court, in its latest ruling, highlighted the error in its interference with the Delhi High Court’s judgment, emphasizing the well-considered nature of the latter’s decision. The Court underscored that the restoration of the arbitral award resulted in an unjust burden on a public utility, constituting a miscarriage of justice.
Analysis:
By setting aside its previous judgment, the Supreme Court rectified the legal anomaly, restoring the parties to their pre-arbitration positions. This move entails the refund of deposited amounts by DMRC, discontinuation of execution proceedings for the award, and cessation of coercive action.
Conclusion:
The Court’s exercise of curative jurisdiction underscores its commitment to rectifying legal injustices, albeit sparingly and in deserving cases. This landmark ruling not only alleviates a substantial financial burden on DMRC but also reaffirms the judiciary’s role in upholding fairness and equity in legal proceedings.
The case, which originated from a contractual dispute between DMRC and DAMEPL, underscores the complexities inherent in public-private partnerships and underscores the importance of meticulous legal scrutiny in resolving such disputes. With this decisive ruling, the legal landscape surrounding arbitration awards and public utilities receives clarity, setting a precedent for future cases.
Written by — Athi Venkatesh AVD