Reliance Infrastructure’s arm, Delhi Airport Metro Express (DAMEPL), on Friday moved the Supreme Court seeking a direction to DMRC to pay interest on interest of around Rs 1,200 crore.
Challenging a part of the Delhi High Court’s judgment that asked Delhi Metro Rail Corporation to pay balance arbitration award amount of around Rs. 3,300 crore it owed to the firm by May 31, DAMEPL said that the only pre-award interest component awarded to it was in respect of the termination payment (TP), but the remaining claims awarded, other than TP carry interest from May 12, 2017, (the date of stamp duty) were yet to be paid.
A bench led by Justice LN Rao reserved the judgment after hearing both the sides. Senior counsel Harish Salve represented DAMEPL and DMRC’s stand was argued by senior counsel Prag Tripathi. The DMRC opposed payment of any further interest on interest to DAMEPL.
The Rinfra firm said that the HC had rightly awarded the interest on TP (pre-award as well as post-award) at the contractually agreed rate of interest ie SBI PLR+2% per annum, but the HC while dealing with remaining claims had erred in considering the issue of interest of interest. DAMEPL has not demanded any interest on interest on the remaining claims, Salve said.
Both sides differed on how much additional interest has accrued on the award amount. While DMRC said that its liability stood around Rs 5,000 crore, the RInfra arm claimed it to be around `8,009.38 crore with interest as on February 14, 2022.