The Supreme Court on Thursday upheld Reliance Infrastructure's arbitral award, directing Delhi Metro Rail Corporation (DMRC) to pay damages of Rs 2,800 crore plus interest to the Reliance Infrastructure arm.
As of January 2019, the total amount of damages including the interest stood at Rs 4,500 crore.
In 2008, Reliance Infrastructure signed an agreement with DMRC for Delhi Airport Express on a Build–operate–transfer (BOT) basis. However, Reliance Infrastructure terminated the agreement in October 2012.
DMRC invoked an arbitration clause seeking to initiate arbitration. In May 2017, Arbitral Tribunal awarded damages to the Reliance Infrastructure arm and directed DMRC to pay Rs 2,800 crore plus interest.
Further in 2018, a Single Judge Bench of Delhi High Court upheld the award and directed DMRC to pay damages. However, in relief to DMRC, the Division Bench of Delhi High Court set aside the arbitral award in January 2019.
Reliance Infra then moved Supreme Court to challenge the Delhi High Court decision to set aside the arbitral award.
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