TMI Blog1985 (6) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... imited (hereinafter " EPI "), a company registered under the Indian Companies Act, 1913, is wholly owned by respondent No. 4-Union of India. The objects of this latter company are, inter alia, to undertake engineering construction and projects both in India and abroad. As part of its foreign business and enterprise, in this case at Kuwait, where EPI has an office, it entered into an agreement or contract with the Government of Kuwait for setting up what is known as the 35th Brigade Camp at Alsadd in Kuwait. It was known as the 35th Brigade Camp Project. Under the contract thus entered into by EPI with the Government of Kuwait, EPI was entitled to associate with various other contractors to undertake and carry out different parts of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roval of its agreement as claimed. There is no dispute that if the said agreement bad been entered into specifically or in express terms with a foreign Government, the company would be entitled to the approval as claimed, as all conditions except the one above-mentioned stood fulfilled. The Board declined to grant approval on the only ground that the agreement was with an Indian company. That, however, was only apparently the position based on a superficial view of the matter. Going through section 80-0 and considering the agreement and its various terms and the undisputed position on certain relevant aspects, including the paramount object (vide Board's circular, exhibit C, to the petition) behind section 80-0, the agreement here more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies that 40% of the total mobilisation advance shall be paid to the company in Indian rupees but on terms equivalent to the amount due to the company in Kuwaiti Dinars. Still further, balance 60% of the mobilisation advance had to be and was paid to the company in Kuwaiti Dinars. The company here had also to comply with all the labour and other laws as prevalent in Kuwait. Still further, the company had to reimburse EPI, the insurance premium on policies taken out by EPI for the workmen employed at Kuwait and such policies also were to be from the Kuwaiti Insurance Company. The petitioner-company herein was also liable to pay in foreign exchange penalty for delay fixed at Rs. 3,000 Kuwaiti Dinars per day of delay. The company had to further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to encourage the export of Indian technical know-how and augmentation of foreign exchange resources of the country. Both these objects or objectives more than satisfactorily stand fulfilled in the present case. Indeed, contrary is not even the contention of the respondents. The agreement also complies with the guidelines evolved by the Board in its aforesaid circular. It is a bona fide agreement. It is not in the least vague. Indeed, it gives sufficient and several details. Still further, it is not an agreement merely for participation simpliciter in business or management operations abroad nor is it motivated by any extraneous considerations whatsoever. Thus, once the outer veil is removed and the core and substance is reached, seen an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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