The Law Ministry has raised legal concerns over the Housing Ministry’s proposal to amend the Metro Railways (Operation and Maintenance) Act. The proposed changes would eliminate the possibility of attachment of properties or bank accounts of Metro rail companies for execution of any decree or order of any court. The Law Ministry has said that any grievances by any party “shouldn’t be left remediless” and the proposed changes in the law “may not sustain in judicial scrutiny”.
The Housing and Urban Affairs Ministry had proposed changes in the law in response to ongoing litigation over the payment of arbitration award to Reliance Infra-led Damepl in the Airport Express Metro line project in Delhi. The Law Ministry has stated that the possibility of an entity or person engaged in business with Metro Rail administration having a grievance cannot be ruled out, and that such grievances should not be left remediless. The possibility of challenging the proposed amendment in court of law may not be ruled out as provisions to curtain all possible remedy for execution of decree may not sustain in legal scrutiny.
The Delhi Metro Rail Corporation (DMRC) has been ordered to pay an arbitral award of over INR 2,700 crore to Damepl, which has now burgeoned to INR 8,000 crore. The Housing and Urban Affairs Ministry had proposed changes in the law barely days after it submitted to Delhi High Court about its decision to “refrain” from giving any sanction to attach the moveable and immovable assets of DMRC to pay the arbitration award amount to Damepl.
The current provision says that attachment of any Metro Rail property requires sanction of the Central government. The proposed amendment would prohibit the attachment of any stock, Metro railway tracks, machinery, plant, tools, fittings, materials or effects used or provided by Metro railway administration for the purpose of traffic on its railway, or its stations or workshops, or offices or earnings or any parcel of land held by the Metro Rail Administration.
