VidhiSangh

Supreme Court of India · 09/09/2021

DELHI AIRPORT METRO EXPRESS PVT. LTD. versus DELHI METRO RAIL CORPORATION LTD.

[2021] 5 S.C.R. 984 · 2021 INSC 464

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Summary

The Court restored the arbitral award favouring Delhi Airport Metro Express, holding that the Division Bench exceeded the limited scope of arbitral review. The tribunal’s conclusions on contractual termination, the significance of the safety certificate and computation of adjusted equity were supported by evidence and possible contractual interpretations. Patent illegality could not justify reassessing those matters. DAMEPL’s appeal was allowed; DMRC’s cross-appeal concerning waiver, specific performance and interest was dismissed.

Issues

  1. Whether the Division Bench exceeded Sections 34 and 37 review by disturbing the tribunal’s termination and adjusted-equity findings.
  2. Whether the safety certificate conclusively established timely cure of contractual defects.
  3. Whether DMRC’s objections concerning waiver, specific performance and contractual interest warranted relief.

Provisions considered

Held

Result

DAMEPL appeal allowed and Division Bench judgment set aside, restoring the arbitral award; DMRC’s appeal dismissed.

Judgment PDF: Supreme Court of India, [2021] 5 S.C.R. 984.