The Delhi High Court on Monday, February 14th 2022, directed Delhi Metro Rail Corporation (DMRC) to give details of funds in its bank account as well as the fixed deposits on a plea filed by Delhi Airport Metro Express Private Limited (DAMEPL) seeking enforcement of the arbitration award dated May 11, 2017.
While also directing DMRC to share the balance sheet qua the year 2021, Justice Suresh Kumar Kait asked both the parties to file their written submissions in the matter.
During the course of hearing, Senior Advocate Parag Tripathi appearing for DMRC submitted that the amount which was lying in the corporation's bank account was earmarked for various projects for metro development which neither belonged to the DMRC nor did the corporation have a disposing power over the same.
"The law is under sec. 60 of Code of Civil Procedure and I have additional protection under sec. 89 of Metro Railway Act. Sec. 60 makes it clear that what is to be recovered and recoverable under CPC is either belonging to the judgment-debtor, or over which, or the profits of which, he has a disposing power," Tripathi argued.
He added "This Rs. 2,670 crore which is for development of phase III and IV and Rs. 1,561 crore which is for metro development in Patna, Maharashtra, etc. are not monies which either belong to me or over which I have disposing power."
On the other hand, Senior Advocate Rakesh Kumar Khanna representing DAMEPL argued that the DMRC was hiding the actual and correct financial position and that thousands of crores of rupees were lying in its fixed deposits, share markets etc.
Accordingly, the matter was posted for further hearing on February 17.
Earlier, DMRC had disclosed before the Court that is has a total of Rs. 6,208.03 Crores funds lying in various banks.
The Judgment Debtor, DMRC, had preferred a challenge under Section 34 of the Arbitration and Conciliation Act, 1996 to the Award which was dismissed by a Single Judge of the High Court vide judgment dated March 6, 2018.
Thereafter, the said judgment was challenged before a division bench under Section 37 of the Act which was partly allowed and the Award was set aside vide judgement dated January 15, 2019.
DAMEPL, the Decree Holder, had then preferred a Special Leave Petition before the Supreme Court of India against the judgement of 2019 which was allowed in its favour vide judgement dated September 9, 2021.
Accordingly, since the Award of 2017 could be executed as a decree in terms of Section 36 of the Act, the present petition was being filed by DAMEPL for execution of the Award passed by the Arbitral Tribunal.
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