11-Apr-2024
2 mins read
Reliance Infra share price tumbled 20% on Wednesday, April 11, 2024 after the Supreme Court set aside Rs 8000 crore arbitral award. The arbitral award was in favour of Anil Ambani-owned Reliance Infra metro arm Delhi Airport Metro Express Private Limited.
The Supreme Court upheld the High Court’s division bench decision which said that an arbitral award against Delhi Metro Rail Corporation suffered patent illegality.
The amount deposited by DMRC shall be refunded. Moreover, any amount paid by the petitioner as a part of coercive action to be refunded.
Reserving the verdict, the SC allowed the DMRC curative petition. The bench, led by Chief Justice DY Chandrachud, said, "However, the curative jurisdiction cannot opt to open floodgates. In the specific facts and circumstances of the case, the Supreme Court's interference led to a grave miscarriage of justice.”
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What Reliance Infra Said on Exchange Filing?
On Wednesday, Reliance Infra said that the Supreme Court order setting aside a Rs 8,000 crore arbitral award granted in favour of Delhi Metro Express Private Limited imposed no liability on it.
Reliance Infrastructure wishes to clarify the order dated on April 10, 2024 passed by the Supreme Court, that it doesn't impose any liability on the company and the company has not received any money from DMRC/ DAMEPL under arbitral award. Reliance Infra said in a stock exchange filing.
While DAMEPL is a subsidiary of Reliance Infra, it is a separate entity and liability falls on DAMEPL.
After the news break, Reliance Infra's share price witnessed a sharp decline, eroding the gains generated in March. In the last session, the company's share closed at Rs 227.60, a 20% decrease in a single day.
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