DMRC’s Salaries & Other Liabilities Towards O&M Expenses Will Not Be Part Of The Attachment Proceedings: HC Clarifies

The Delhi High Court has clarified that the salaries and other Operation & Maintenance [O&M] expenses which are to be borne by Delhi Metro Rail Corporation shall not be attached if it fails to pay the dues to Reliance Infra-Owned Delhi Airport Metro Express Private Limited.

The bench of Justice Yashwant Varma gave this clarification while dealing with the plea by DMRC seeking a review of the Court’s Order on payment of unpaid dues by DMRC to DAMEPL under an arbitral award.

The Attorney General appearing for the review petitioner drew the attention of the Court to its Order dated March 10, 2022 and submitted that even in the said decision rendered by the Court adequate protection had been extended insofar as salaries and other Operation & Maintenance [O&M] expenses which are to be borne by DMRC is concerned.

It was submitted that the Court while framing direction “D‟ has inadvertently failed to make an identical provision.

Direction “D” read thus- “In case of a failure on the part of parties to proceed in terms of the above directions, the entire amount standing to the credit of Total DMRC Funds, Total Project Funds and Total Other Funds as of today shall stand attached forthwith without reference to Court”

The Court observed that in terms of that order DMRC had been accorded protection insofar as salaries, medical benefits, post retrial benefits, security deposit on smart cards and other liabilities towards O&M expenses.

“It is the aforesaid order which has attained finality inter partes. This Court is of the considered view that the said stipulation should also be read in direction „D‟ as framed. The said direction shall consequently stand amended and liable to be read accordingly.”, the Court held.

Attorney General R. Venkataramani appeared for the review petitioner.

Earlier, the Court had directed the Centre and the Delhi Government to attend to the requests of the Delhi Metro Rail Corporation for extension of sovereign guarantees/subordinate debt enabling it to liquidate its liabilities under the Arbitral Award passed in favor of the Delhi Airport Metro Express Private Limited.

Cause Title- Delhi Airport Metro Express Private Limited v. Delhi Metro Rail Corporation Ltd.

Click here to read/download Order