Justice KV Viswanathan recuses from DMRC contempt plea in Supreme Court against Anil Ambani's DAMEPL

Supreme Court judge Justice KV Viswanathan on Thursday recused from hearing the contempt petition filed by Delhi Metro Rail Corporation Limited (DMRC) against Anil Ambani's Delhi Airport Metro Express Pvt Ltd. (DAMEPL) over failure to refund amounts deposited with the latter [Delhi Airport Metro Express Pvt Ltd v. Delhi Metro Rail Corporation Limited].

The matter was listed before a Bench of Justices BR Gavai and KV Viswanathan when the latter chose to recuse.

The Supreme Court had in April this year set aside a ₹2,800 crore arbitral award in favour of DAMEPL against DMRC.

A Bench of (then) Chief Justice of India DY Chandrachud with Justices BR Gavai and Surya Kant had allowed the curative petition filed by DMRC against the Court's September 2021 judgment.

In its 2021 judgment, the apex court had upheld the crore arbitral award over a 2008 concession agreement for the Delhi Airport Express Line.

But that judgment was set aside by the Court in April this year, thereby restoring a judgment rendered by a Division Bench of the Delhi High Court that had ruled in favour of DMRC.

DMRC has now sought initiation of contempt of court proceedings over the alleged non-compliance with the Supreme Court's direction to refund amounts deposited by it with DAMEPL.

Background

DAMEPL was the special purpose vehicle of Reliance Infrastructure.

The case pertains to a 2008 concession agreement between DAMEPL and DMRC for Delhi Airport Express on a Build–operate–transfer (BOT) basis.

DAMEPL terminated the agreement in 2012 citing various structural defects in the metro line which were allegedly not cured by DMRC despite being pointed out by DAMEPL.

DMRC invoked an arbitration clause seeking to initiate arbitration. The main issue that arose for determination before the arbitral tribunal constituted under the concession agreement was the validity of the termination notice dated October 8, 2012.

DMRC claimed that the termination notice issued by DAMEPL is illegal, as DMRC had taken various steps for honouring its obligations under the concession agreement.

In 2017, Arbitral Tribunal awarded damages to the DAMEPL and directed DMRC to pay ₹2800 crore plus interest.

In 2018, a single-judge of the Delhi High Court upheld the award but the same was overturned by a Division Bench on appeal.

The Supreme Court in appeal overturned the High Court Division Bench judgment and restored the award in 2021.

This was again overturned by the top court in 2024 in exercise of its curative jurisdiction.