In Brief
Delhi Airport Metro Express Pvt. Ltd. (DAMEPL) was the concessionaire for the Airport Metro Express Line project. After structural defects in the civil works were discovered, DAMEPL issued a notice on 9 July 2012 asking DMRC (Delhi Metro Rail Corporation) to cure the defects within 90 days. When defects remained uncured, DAMEPL terminated the concession agreement on 8 October 2012. An arbitral tribunal upheld the termination's validity and awarded termination payment of Rs.2,782.33 crore. The Delhi High Court's Division Bench set aside key parts of the award, faulting the tribunal's interpretation of contract terms and treatment of defects. The Supreme Court reversed the High Court, holding that courts must exercise strict restraint when reviewing arbitral awards and cannot interfere merely because they disagree with the tribunal's factual findings or reasonable contractual interpretation. The award was restored.
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