NEW DELHI: The Supreme Court on Thursday dismissed Delhi Airport Metro Express Private Limited (DAMEPL) petition for additional interest (interest on interest) payment of around Rs 1,200 crore pursuant to an arbitration case that was decided in favour of DAMEPL.
“We are therefore of the considered view that in view of the specific agreement between the parties, the interest prior to the date of award so also after the date of award will be governed by Article 29.8 of the Concession Agreement, as has been directed by the Arbitral Tribunal. The findings recorded by the Arbitral Tribunal have reached finality in view of the judgment and order dated 9th September 2021...” the top court order reads.
“We, therefore, see no error in the observations of the learned Single Judge of the Delhi High Court... In the result, we find no merit in the present appeal. The appeal is accordingly dismissed.” It added.
Both sides differed on how much additional interest has accrued on the award amount.
The plea in the top court had challenged a limited portion of the HC order that told DMRC to pay the balance arbitration award amount of around Rs 3,300 crore to DAMEPL by May end.
DAMEPL submitted 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.
The DMRC had opposed payment of any further interest on interest to DAMEPL.
The high court order had come on a petition by DAMEPL seeking enforcement of the arbitration award that it had won in May 2017 against DMRC.