Back
IN THE HIGH COURT OF DELHI AT NEW DELHI
V. Kameswar Rao, J.
Delhi Airport Metro Express Private - Appellant
Versus
Delhi Metro Rail Corporation Limited - Respondent
OMP (Enf.) (Comm.) 145 of 2021
Decided On : 20-06-2022
The execution petition was disposed of on March 10, 2022, with directions for DMRC to divert its funds or raise loans to satisfy the Award. The order was challenged in Civil Appeal No.3657/2022, which was dismissed by the Supreme Court on May 05, 2022. DMRC was granted time to ensure payment of the outstanding amount to the applicant/decree holder on or before August 05, 2022. DMRC was directed to file an affidavit giving the break up of the payments made to satisfy the award within one week thereafter.
Certainly. Based on the provided legal document, here is a rewritten version of the contract, incorporating the relevant legal principles and obligations without specific case law citations:
Revised Contract
Parties:
Recitals:
Terms and Conditions:
The total remaining payable amount, as of the date of this contract, shall be Rs. 2652.17 crores, subject to adjustments based on payments made and interest accrued.
Funds and Asset Utilization:
DMRC shall maintain a minimum reserve amount for statutory expenses, salaries, and other statutory obligations, as directed by the court, and shall not divert these reserved funds for other purposes.
Attachment and Enforcement:
The attachment shall be effective immediately and shall include all assets over which DMRC has disposal power, excluding those assets protected under statutory provisions related to public interest.
Interest Calculation:
The interest rate shall be as specified in the arbitration agreement, and the calculation shall be based on the applicable statutory or contractual rate, without deviation.
Timeline for Payment:
In the event of delay, DMRC shall be liable to pay interest on the overdue amount at the agreed rate until the date of actual payment.
Reporting and Affidavits:
DMRC shall also provide a comprehensive breakdown of payments made towards satisfying the arbitral award.
Legal and Statutory Compliance:
Any diversion of funds or assets contrary to this agreement shall be deemed a breach and may lead to further legal action.
Additional Provisions:
The parties agree that the court's orders and final judgments shall be binding and enforceable, and that DMRC shall take all necessary steps to comply with the directions issued.
Dispute Resolution:
Signatures:
Decree Holder (DAMEPL)
DMRC (Judgment Debtor)
Date: ___
Please review and customize further if needed.
ORDER
V. Kameswar Rao, J. (Oral). - By this order, I shall consider the application being EX.APPL.(OS) No.2933/2022. Suffice it to state that the execution petition bearing OMP (ENF.) (COMM.) No.145/2021 was disposed of by this Court on March 10, 2022, holding as under:
40.The award dated 11.05.2017 has attained finality and cannot be allowed to remain as a paper award, therefore, the judgment debtor is duty bound to either divert its finds shown to be available in different heads mentioned in the affidavit of 14.02.2022 after seeking permission of the Central Government, if necessary, or raise loans to satisfy the award.
41. Accordingly, out of the funds available under the head Total DMRC Funds of Rs.1,452.10 cores, judgment debtor is directed to keep aside amount of Rs.628 crore (Rs.514+ Rs.114 crore) towards statutory expenses as mentioned herein above and from the remaining amount, part payment of decreetal amount be made within two weeks.
42. For the remaining outstanding amount, judgment debtor is directed to make the payments in two equal instalments within two months. The first instalment shall be paid on or before 30.04.2022 and the second instalment shall be made on or before 31.05.2022.
43. With aforesaid directions, the present petition and pending applications are accordingly disposed of
2. The aforesaid order was the subject matter of a Civil Appeal No.3657/2022 ('appeal' in short) filed by the Decree Holder before the Supreme Court, with regard to the findings of this Court in Paragraph 30 of the judgment which reads as under:
30. Further, the plea whether the decree holder has a right to claim interest over interest till the date of the payment in terms of arbitral award in question or not, the impugned arbitral award holds that the decree holder shall be entitled to the interest from the date requisite stamp duty is paid by it. In the present case, the requisite stamp duty is said to have been made good by the decree holder on 12.05.2017. Meaning thereby, the interest on the awarded amount shall commence from 12.05.2017 till the date of realization. There is no observation in the award that interest, if not paid, shall be added in the principal amount for future interest. Therefore, the claim of decree holder that the outstanding interest has to be added in the principal amount cannot be accepted.
3. The appeal filed by the applicant herein, i.e., the petitioner/decree-holder was dismissed.
4. The submission of Mr. Sandeep Sethi, learned Senior Counsel appearing for the applicant i.e., Delhi Airport Metro Express Pvt. Ltd. ('DAMEPL', for short and hereinafter referred to as decree-holder / DAMEPL interchangeably) is, despite the Court directing payment of the awarded amount in the aforesaid terms, the Judgment debtor, i.e., the Delhi Metro Rail Corporation ('DMRC', for short and hereinafter referred to as DMRC / Judgment Debtor interchangeably) has paid only a sum of Rs. 166.44 crores to DAMEPL on March 14, 2022, and has not paid any amount thereafter. Hence, DAMEPL filed the present application claiming the payment of Rs. 4427.41 crores (as on May 10, 2022) by attachment of, inter alia, bank accounts, fixed deposit, etc. of DMRC. Further, interest continues to apply till the date of actual payment by DMRC.
5. It is his submission that DMRC has, contrary to the Arbitral Award dated May 11, 2017 (' Award', for short) and the Supreme Court judgment dated September 09, 2021, upholding the Award, contended that paragraph 30 of the Execution Judgement allegedly rejects the present applicant's entitlement to all pre-award interest. He states the attempt of DMRC is to read a single sentence de hors the remaining Execution Judgement to mislead this Court. To buttress his arguments, Mr. Sethi stated that in addition to the Termination Payment of Rs. 2782.33 crores, the Arbitral Tribunal has awarded Rs. 210.16 crores in favour of the Decree Holder towards other claims/compensation as well as Rs. 46.94 crores in favour of the r
The court granted time to DMRC to ensure payment of the outstanding amount to the applicant/decree holder on or before August 05, 2022, and directed DMRC to file an affidavit giving the break up of t....
Point of Law : Decree/Award – Execution proceedings - Court in execution proceedings cannot go behind the decree.
Payment recognized under decree requires unconditional compliance; bank guarantees do not suffice, and interest continues until funds are available to the decree holder.
Future interest on an arbitral award must be calculated on the total sum directed to be paid, including both principal and interest components. Liability for such interest accrues starting from the d....
Interest on decreed amounts will not cease upon deposit in a court other than the executing court; actual payment to the decree holder is required to stop interest accrual.
Interest ceased to run on the deposited amount after the dismissal of FAO No. 284/2005 on 04.12.2008.
The court ruled that amounts deposited under a decree should first be applied towards interest and then to the principal sum unless otherwise directed in the decree.
Encashment of demand draft offered in full and final settlement without prior protest constitutes acceptance by conduct under Section 8, Indian Contract Act, satisfying the awards; subsequent protest....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
