DMRC not bound to revive terminated agreement: NCLAT

In a relief to Delhi Metro Rail Corporation (DMRC), the appellate tribunal NCLAT has said that DMRC is not bound to revive the concession agreement with Pratibha Industries Ltd (PIL) for a multi-level parking at one of its stations.

Earlier, on July 30, 2024, NCLT had approved a resolution plan for PIL by a consortium of Crown Steels and Sunrise Industries. As per the plan, DMRC was required to revive the concession agreement in favour of PIL in full force and effect without any additional liability towards the bidder.

After approval of the plan, the successful bidder approached NCLT seeking directions against DMRC.

“We therefore direct the Applicant/SRA (successful bidder) as well as DMRC to take all the necessary steps in terms of the approved Resolution Plan for the effective implementation of the resolution plan in question,” NCLT said in a September 11, 2025, order.

DMRC had filed an objection before the NCLT, questioning the jurisdiction of the insolvency tribunal. However, it was rejected. Following this, it moved to the National Company Law Appellate Tribunal (NCLAT).

NCLAT, in its order dated March 27, observed that since the concession agreement with PIL was terminated on September 1, 2017, much prior to the initiation of insolvency proceedings against the firm, DMRC is not bound to revive the agreement.

The concession agreement between the two parties was for a multi-level parking with commercial development at the New Delhi Railway Station-cum-Airport Terminal of Airport Express Line.

“The Appellant (DMRC) being not part of the CIRP process, we are of the view that the Adjudicating Authority (NCLT) could not have issued any direction regarding Concession Agreement, whereas Concession Agreement dated 01.04.2010 was admittedly terminated on 01.09.2017 and had not been revived as on date,” said a bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra.

Modifying the NCLT order of September 11, 2025, it said that by the “approval of the RP or by the impugned order, no direction can be issued to the Appellant (DMRC) to revive the Concession Agreement terminated on September 1, 2017.”