The Supreme Court on Monday dismissed public sector Damodar Valley Corporation’s (DVC) plea challenging a Calcutta High Court direction to pay Rs 898 crore dues it owed to Reliance Infrastructure Limited (R-Infra), but granted four more week time to comply with the directions.

“After hearing the learned senior counsel for the parties, we are not inclined to interfere with the judgment of the High Court. Both the Special Leave Petitions are dismissed. Pending application(s), if any, shall stand disposed of.

“However, the High Court is requested to hear the petition under Section 34 of the Arbitration Act expeditiously and not later than a period of three months from today. Four weeks’ time is granted for compliance of the order given by the High Court,” a bench of Justice L.Nageswara Rao and Justice B.R.Gavai said in a written order.

While senior advocate Harish Salve appeared for Reliance, DVC was represented by senior counsel Krishan Venugopal, son of Attorney General K.K. Venugopal.

Earlier on March 25,the Calcutta High Court had directed DVC to pay an arbitral award in favour of Rinfra to the tune of Rs 898 crore while rejecting the public sector plea of huge financial difficulties.

The high court had passed the impugned order while rejecting a petition filed b DVC under Section 36(2) of the Arbitration and Conciliation Act, 1996 seeking a stay of the Award dated 21.12.2019 passed in arbitration proceedings between Reliance Infrastructure Limited (RInfra) and itself.

The high court had directed DVC to secure the Award amount of Rs. 898 crore by depositing Rs.595 crore in cash and Rs 303 crore by way of bank guarantees within a period of 4 weeks as a condition for stay of the award.

The period of four weeks has came to an end on 22.04.2022. DVC had not complied with the high court’s order and instead chose to appeal in the Apex court which today dismissed the appeal.

However, the Apex court granted a four week breather to DVC to comply with the high court directive.