Why SC Junked Its 2021 Verdict Favoring Ambani’s Firm: A Legal Reversal

Introduction

Anil Ambani’s firm: In a legal twist that sent shockwaves through corporate circles, the Supreme Court of India recently overturned its own 2021 judgment that had favored Anil Ambani’s firm, Reliance Infrastructure. The verdict, which had awarded the firm an arbitral award of Rs 8,000 crore, was set aside, leading to significant financial repercussions. Let us delve into the intricacies of this legal reversal and its implications for both the business world and Anil Ambani’s fortunes.

The Background: Delhi Metro vs. Anil Ambani’s Firm

The dispute at the heart of this legal saga revolves around the Delhi Airport Metro Express Line (AMEL). Delhi Metro Rail Corporation (DMRC) and Delhi Airport Metro Express Private Limited (DAMEPL), a subsidiary of Reliance Infrastructure, were embroiled in a bitter battle over the construction and operation of this metro line. The arbitration proceedings resulted in an award in favor of DAMEPL, which was later challenged by DMRC.

The 2021 Verdict: A Patently Illegal Award?

In September 2021, the Supreme Court had restored the arbitral award in favor of DAMEPL. However, the recent judgment has now set aside this decision. Here’s why:

1. Legal Errors: The court found that its previous verdict had been affected by clear legal errors. By setting aside the Delhi High Court’s judgment, the Supreme Court had inadvertently restored an award that was deemed “patently illegal.”
2. Public Utility Burden: The award saddled DMRC, a public utility, with an exorbitant liability. The court observed that this had caused a “grave miscarriage of justice.”
3. Curative Jurisdiction: The Supreme Court rarely entertains curative petitions, which are filed after the rejection of a review petition against the original judgment. In this case, the court invoked its Article 142 jurisdiction to intervene again.

The Financial Fallout: A Blow to Ambani’s Fortunes

For Anil Ambani, once ranked as the sixth-richest person globally, this legal reversal is a significant setback. His fortunes have faced a series of challenges in recent years, including the bankruptcy of his telecom firms and a personal insolvency case. The Supreme Court’s decision now requires DAMEPL to refund all sums previously received from DMRC, amounting to about Rs 2,500 crore.

Anil Ambani’s Journey: From Sixth Richest to Legal Battles

Anil Ambani’s journey in business began under the guidance of his father, Dhirubhai Ambani. After Dhirubhai’s death in 2002, Anil and his elder brother, Mukesh, led separate paths. Conflicts over control led to a split, with Mukesh gaining control of the flagship oil and petrochemical businesses, while Anil took charge of newer ventures. The ongoing disputes between the brothers continue to shape their separate trajectories.

Conclusion: Legal Uncertainties and Corporate Realities

As Anil Ambani grapples with legal battles, the business world watches closely. The Supreme Court’s decision underscores the importance of legal clarity and accountability. For Ambani, the road ahead remains uncertain, but his resilience and strategic choices will determine his fortunes.

Disclaimer: This article is a fictional creation and does not reflect real-world events.

Note: The views expressed in this article are those of the author and do not necessarily represent the official stance of any organization or government.¹²³

References:

1. Anil Ambani’s firm deals with Rs 8,000 crore loss in arbitration ruling
2. The unmaking of Anil Ambani’s billionaire status: From 6th richest to facing ₹3,300 crore refund
3. Anil Ambani suffers another setback as SC sets aside arbitral award of ₹8,000 crore in favour of Reliance firm