1993 (10) TMI 232 - SUPREME COURT

Whether in proceedings for enforcement of a foreign award under the Foreign Awards Act it is permissible to impeach the award on the merits?

Held that:- In view of the provision in the scheme, all pending suits, appeals or other proceedings of whatever nature by or against the transferor company, viz., Renusagar, shall not abate or be discontinued or in any way be prejudicially affected by reason of the transfer of the undertaking of Renusagar and the said proceedings may be continued, prosecuted and enforced by or against Renusagar as if the scheme had not been made. The scheme of amalgamation does not, therefore, in any way affect the continuance of the proceedings in the above appeals in this court by Renusagar and in these circumstances, we find no ground for substituting the name of Hindalco Industries Ltd., as the appellant in place of Renusagar in C. A. No. 71 of 1990. The said application is, therefore, rejected.

In the result, C.A. Nos. 71 and 71A of 1990 and C.A. No. 379 of 1992 are dismissed and the decree passed by the High Court is affirmed with the direction that in terms of the award an amount of US $ 12,333,355.14 is payable by Renusagar to General Electric out of which a sum of US $ 6,289,800 has already been paid by Renusagar in discharge of the decretal amount and the balance amount payable by Renusagar under the decree is US $ 6,043,555.14 which amount on conversion in Indian rupees at the rupee dollar exchange rate of ₹ 31.53 per dollar prevalent at the time of this judgment comes to ₹ 19,05,53,293.56. Renusagar will be liable to pay future interest at 18 per cent. on this amount of ₹ 19,05,53,293.56 from fine date of this judgment till payment. The parties are left to bear their own costs.