Provide bank details: HC to DMRC as part of the enforcement action by DAMEPL

The Delhi High Court on Wednesday asked Delhi Metro Rail Corp (DMRC) to provide details of its bank accounts in India and abroad and how much money is in those bank accounts, even as the company claimed the financial inability to pay pending dues of over Rs. 6,000 crore to the subsidiary of Reliance Infrastructure Delhi Airport Metro Express (DAMEPL).

Judge Suresh Kait gave the instructions after DAMEPL’s lawyer Prateek Seksaria argued that the metro operator has at least Rs 1,642.69 crore available in his bank accounts, yet he pleads his inability to obtain its arbitration award.

DMRC told HC that instead of paying the company, it offered to take over RInfra’s Rs 5,000 crore debt. He said public office will be affected if the entire amount is paid at once and asked for time to organize the money from the banks to pay the arbitration award. DMRC had paid Rs 1,000 crore into the escrow account earlier this month.

“This is the case with the laureate that whatever we receive, we have to pay the banks in the performance of our duties. We suggested that we take over your debt and pay the bank. And the bank can give us down payments, etc. that we will have to negotiate with the bank. Maybe the bank can give us some relaxation too, but you will be relieved of all responsibility. Maybe we, as a government company, can negotiate with the banks, and if the banks agree to write off some of it, good for us.

However, Seksaria, while rejecting the proposal, said the banks also disagreed with the arrangement. He said the lenders have already rejected the DMRC’s proposal and a letter in this regard has been received by the former metro operator. This is an enforcement procedure and not a stage at which the judgment debtor can say that he has decided to make an offer, he argued.

Judge Kait observed, however, that he could not force the Ambani group company to accept DMRC’s proposal. The judge also pointed out to the indebted company that under the law, apart from the “earnings” of the Delhi metro, nothing other than land, machinery, trains and offices can be tied for. implement a court decree.

Senior lawyer Parag Tripathi, who is also appearing for DMRC, said even money intended for the metro expansion is exempt.

DAMEPL is seeking enforcement of the arbitration award it won in May 2017. Even the Supreme Court on September 9 upheld the Rs 4,600 crore arbitration award in favor of the Anil Ambani group company, enforceable against DMRC.

However, the two parties did not agree on the amount of additional interest accrued on the amount. While DMRC says the liability now stands at around Rs 5,000 crore, the RInfra arm says it is close to Rs 7,000 crore now and is increasing with each passing day.

The case will be heard on January 11.