Texmaco Rail Seeks Revival of Insolvency Plea Against DAMEPL

Texmaco Rail & Engineering has submitted a petition to the NCLT to reinstate its insolvency case against Delhi Airport Metro Express Pvt Ltd. This follows a Supreme Court decision nullifying an arbitration award against DMRC, complicating DAMEPL's financial abilities to settle dues.

Texmaco Rail & Engineering has petitioned the National Company Law Tribunal (NCLT) to restore its insolvency proceedings against Delhi Airport Metro Express Pvt Ltd (DAMEPL). The company claims that DAMEPL lacks sufficient funds after a significant Supreme Court ruling.

The case's history dates back to 2019 when Kalindee Rail Nirman, now merged into Texmaco, initially approached the NCLT with the insolvency plea. This effort was halted due to a settlement with DAMEPL, related to expected payments from arbitration awards against DMRC.

However, recent legal developments have changed the financial landscape. The Supreme Court overturned a prior arbitration verdict, which had directed Delhi Metro Rail Corporation (DMRC) to pay DAMEPL a large sum. Lacking this compensation, Texmaco argues that DAMEPL is unable to fulfill its financial obligations.

(With inputs from agencies.)