The Supreme Court of India has issued a contempt notice to Axis Bank, its Managing Director Amitabh Choudhary, and a subsidiary of Reliance Infrastructure in a long-running dispute over the alleged non-payment of a ₹4,500 crore escrow deposit.
Case Background:
- Contempt Petition:
- The Delhi Metro Rail Corporation (DMRC) filed a contempt plea accusing Axis Bank, Reliance Infrastructure’s unit Delhi Airport Metro Express Private Limited (DAMEPL), and their officials of defying a Supreme Court order issued in April 2024.
- Supreme Court’s April 2024 Ruling:
- The court had overturned a previous decision mandating DMRC to pay a ₹8,000 crore arbitration award to DAMEPL.
- Axis Bank was directed to refund ₹4,500 crore (₹2,800 crore principal plus interest) held in escrow on behalf of DMRC.
- Allegations of Non-Compliance:
- DMRC claims that Axis Bank and DAMEPL have “wilfully” ignored the court’s instructions and have not taken the necessary steps to return the escrow funds.
Current Proceedings:
- The Supreme Court has directed the respondents to show cause why contempt proceedings should not be initiated against them for non-compliance.
- This marks a critical development in the high-stakes legal battle involving public funds and corporate accountability.
Implications:
- The case highlights the ongoing challenges in enforcing arbitration rulings and ensuring adherence to judicial directives.
- It also underscores the accountability of financial institutions and corporate entities in adhering to court orders, especially in matters involving substantial public and private funds.
Axis Bank and other parties are expected to submit their responses to the Supreme Court in the coming days.
