DMRC Not Bound to Revive Insolvent Pact: NCLAT Ruling

In a decisive ruling, the National Company Law Appellate Tribunal (NCLAT) has determined that the Delhi Metro Rail Corporation (DMRC) is not obligated to reinstate its concession agreement with Pratibha Industries Ltd (PIL), quashing a prior resolution plan approved by NCLT.

The plan required DMRC to revive a terminated agreement for a multi-level parking project. However, NCLAT noted that since the agreement was terminated in 2017, before insolvency proceedings began, DMRC is not bound by the stipulations.

This decision highlights the jurisdictional tensions between NCLT and NCLAT, marking a critical juncture in legal interpretations of insolvency and contract law within the business and transportation sectors.