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Overnite Express Limited vs Delhi Metro Rail Corporation

Overnite Express Limited v. Delhi Metro Rail Corporation


Background to the Dispute

The debate emerges out a Concessionaire (Agreement), entered between Delhi Metro Rail Corporation Ltd. (Delhi Metro Corporation) and Delhi Airport Metro Express Private Limited (Delhi Airport Metro Limited) for the development, activity, and support of the Delhi Airport Metro Express Line (Airport Express). The public-private organization was entered for giving rapid metro availability. Under the Agreement, the Delhi Metro Corporation needed to attempt clearances and bear the expenses identifying with obtaining of land and development of all affable structures like passages, viaducts, and so forth, while the plan, gracefully, establishment, testing and authorizing of different railroad frameworks were to be given by Delhi Airport Metro Limited, as a private accomplice.

The question emerged according to the activity of the Airport Express. All the more explicitly, on 22 March 2012, the Delhi Airport Metro Limited mentioned Delhi Metro Corporation to orchestrate a joint assessment of viaducts and heading, before the expiry of the imperfection risk time of the common contractors as pondered under the Agreement. Hence, on May 23, 2012, Delhi Airport Metro Limited indeed kept in touch with Delhi Metro Corporation featuring genuine plan and quality issues as to the establishment of a viaducts course, for example, indications of braces having sunk at certain areas causing twisting and breaks. Activities of the Airport Express were in the end suspended on July 8, 2012.

On July 9, 2012, Delhi Airport Metro Limited summoned the arrangements of the Agreement and set out a non-thorough rundown of imperfections to be relieved by Delhi Metro Corporation inside a time of 90 days, and expressed that a disappointment would set off a function of default under the Agreement. Delhi Metro Corporation denied any opposite statements and conjured the mollification system specified under the Agreement. Hence, after acquiring accreditation from the Commissioner of Metro Road (Safety Certificate), Delhi Airport Metro Limited continued their procedure on January 22, 2013, in any case, presently, tended to a letter calling upon Delhi Metro Corporation to assume control over the venture and the advantages by close of business long periods of June 30, 2013. Since July 1, 2013, the Airport Express tasks are being dealt with by Delhi Metro Corporation.

On May 11, 2017, an arbitral award held that the pink slip gave by Delhi Airport Metro Limited was legitimate; Delhi Metro Limited had neglected to fix the break inside the period indicated under the Agreement; and subsequently, Delhi Airport Metro Limited was qualified for getting end installment and enthusiasm under the Agreement (Award). Delhi Metro Limited pounced upon the Award under the watchful eye of the Single Judge under Section 34 of the Act. The educated Single Judge maintained the Award. Delhi Metro Corporation claimed this judgment before the Division Bench of the Delhi High Court under Section 37 of the Act.



The judgment of the Court

Entries were progressed as for the accompanying issues.

  • First, regardless of whether partaking in the compromise cycle and working the metro line subsequent to ending the Agreement brought about a waiver of Delhi Airport Metro Limited's entitlement to end the Agreement;

  • Second, regardless of whether the pink slip was truly given and the Award accurately concluded that Delhi Metro Corporation had not made successful strides for the evacuation of imperfections accordingly causing 'material antagonistic impact' on Delhi Airport Express Limited; and

  • Third, regardless of whether the end installment and enthusiasm on such installment was effectively processed by the arbitral council.



This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1) (A) and other related laws being enforced in India for the time being.



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