DMRC to pay Rs 2,800 crore plus interest to Reliance Infra in arbitral award

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The Supreme Court on September 9 upheld Reliance Infrastructure's Rs 2800 crore arbitral award, directing DMRC to pay damages of Rs 2800 crore plus interest to Reliance Infrastructure arm, reported CNBC-tv18.

As of January 2019, the total amount of damages including the interest stood at Rs 4,500.

The case pertains to a 2008 agreement between Reliance Infrastructure and DMRC for Delhi Airport Express on a Build–operate–transfer (BOT) basis. However, Reliance Infrastructure terminated the agreement in 2012.

DMRC invoked an arbitration clause seeking to initiate arbitration. In 2017, Arbitral Tribunal awarded damages to the Reliance Infrastructure arm and directed DMRC to pay Rs 2800 crore plus interest.

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 2019.

Reliance Infra then moved Supreme Court to challenge the Delhi High Court decision to set aside the arbitral award.

Following the report, shares of Reliance Infra hit 5 percent upper circuit.

The stock was trading at Rs 74.15, up Rs 3.50, or 4.95 percent. It has touched an intraday high of Rs 74.15 and an intraday low of Rs 71.30. There were pending buy orders of 938,284 shares, with no sellers available.