The Delhi High Court on Wednesday directed the Delhi Metro Rail Corporation (DMRC) to file an affidavit furnishing the details of its bank accounts along with the balance amount in connection with a Reliance Infrastructure subsidiary's plea for the execution of an arbitral award of over Rs 4,600 crore against it.
Justice Suresh Kumar Kait noted that the DMRC has Rs 1642.69 crore available in its bank accounts, and said that if the Delhi Airport Metro Express Private Limited (DAMEPL) does not want to accept the corporation's offer of taking over its debts to the extent of the award, the court can't force it to do so.
“(DAMEPL says) if it has money in hand, in escrow account, at least it can bargain with banks for restructuring etc. Suppose it passes on total liability to you, to pay to the lenders, it will lose the bargaining power. It is a decree holder, you (DMRC) are a judgement debtor. If your offer is accepted, no issues. But when it is not accepting that, this court can't force it that you accept in this fashion,” the judge said.
The judge further observed that while the attachment of the DMRC's properties was not permitted, there was accounts.
“Here, properties cannot be attached as per Section 89 (of The Metro Railways (Operation and Maintenance) Act, 2002). The option left with court is that how much money is left in the bank account. That can be taken care of,” the court stated. “The DMRC is directed to furnish the details of banks accounts ... In Delhi or outside Delhi. It will also be mentioned in the affidavit, how much amount is lying in a particular account,” the court ordered.
Lawyer Prateek Seksaria, appearing for DAMEPL, informed that its lenders have rejected the DMRC's proposal of taking care of its liabilities and contended that no special treatment can be given to the government in the present execution proceedings.
The government should “set an example” by paying the award instead, argued the lawyer who claimed that even after the DMRC deposited Rs 1000 crore in the escrow account, over Rs 6,000 crore was still due.
He submitted that DAMEPL is entitled to the amount awarded in the arbitration proceedings as well as the benefit of “any surplus” which may be utilised to restart its businesses.
DAMEPL's counsel further relied on the DMRC's affidavit to state that the corporation has over Rs 5800 crore in its bank accounts as on December 17, with Rs 1642 crore being its earning and over Rs 2400 crore and Rs 1700 crore being its project allocation fund and deposit fund, respectively.
He prayed that at least the admitted earnings of the DMRC should straightaway be appropriated towards execution of the award. Solicitor General Tushar Mehta and senior advocate Parag Tripathi, appearing for the DMRC, told the court that they have no instructions with respect to the banks concerned rejecting the proposal and reiterated that the
corporation taking over DAMEPL's debts to the extent of the award and negotiating with the lenders would be in public interest.