Delhi International Airports Ltd wins favorable arbitration award against AAI

Delhi International Airports Limited ("DIAL"), a step down subsidiary of GMR Airports Infrastructure Limited had invoked arbitration against Airports Authority of India ("AAI") seeking certain reliefs as eligible to it on account of the occurrence of Force Majeure event (Covid-19 period) under the Operation, Management and Development Agreement dated 4 April 2006 ("OMDA").

The Arbitral Tribunal has passed the Award on 6 January 2024, the key aspects of the Award being the following:

1. DIAL is excused from making payment of Monthly Annual Fee ("MAF") for the period from 19th March 2020 to 28th February 2022 due to existence of force majeure. Accordingly:

a) The amount of MAF paid by DIAL to AAI for the period March 2020 to December 2020 was ordered to be refunded along with interest.

b) DIAL is also excused from making payment of MAF from January 2021 till February 2022.

2. There shall be extension of the term of OMDA for 1 year and 11 months i.e., the period excused under force majeure.

The award may be challenged, in which case DIAL will appropriately defend the matter.

Shares of GMR Airports Infrastructure Limited was last trading in BSE at Rs. 83.91 as compared to the previous close of Rs. 84.49. The total number of shares traded during the day was 3604359 in over 12963 trades.

The stock hit an intraday high of Rs. 85.25 and intraday low of 81.90. The net turnover during the day was Rs. 302988629.00.

Source : Equity Bulls

Keywords

GMRAirportsInfrastructure INE776C01039 AirportServices DelhiInternationalAirports Arbitration AAI