TMI Blog2023 (10) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... the purposes of conversion of Iraqi Dinars to US Dollars and the exchange rate being 01 Iraqi Dinar equivalent to 3.37778 US Dollars. There are no mention of payment being made in the Indian Currency i.e. INR from the agreement. Once there is no contract between the parties of making payment in Indian Currency INR, then, there would be no question of determining or finding out any date of conversion. Whether the award contained any stipulation of making the payment in Indian currency? - HELD THAT:- The agreement had stipulated that the Iraqi Dinar would be convertible to US Dollars at the following rate i.e. 1 Iraqi Dinar = 3.37778 US Dollars. The award does not permit or grant the liberty to the appellant to make the amount payable in Iraqi Dinars to be converted into Indian Currency (INR) - Apart from the amount of Bank Guarantee which had been encashed by the NPCCL of Rs.20 Lakhs, the other amount awarded is in Iraqi Dinars only. Whether the agreement, award or the judgment of this Court dated 24.02.2015 provided for payment of the awarded amount in Indian currency? - HELD THAT:- The award does not permit payment of the awarded amount in Indian currency except the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are in Iraqi Dinars ID and represent the total lump sum amount payable to the Associate for various components of works. For the purpose of payment, the schedule of prices shall be used, and payment released against all monthly account bills submitted by the Associate after due verifications. 32. PAYMENT OF WORK IN PROGRESS 32.1. The NPCC may pay initial advance in the form of purchase of air tickets for workers and staff of the Associate from Delhi to Iraq. 2. The NPCC shall give advance, towards the construction of residential accommodation including field office, store at the site of work, towards cost of transport vehicles (1 mini - bus, 1 land Rover and Jeep, 2 Mobile lighting units garage tools and equipment). 3. Help required for setting up of camp and for initial running of equipment will be extended to by the Chief Project Manager to the extent he deems necessary in the interest of work. The above advances shall be recovered from the on account bills after 10% of the work is completed and before 90% of the work is complete. The recovery will be in the same currency as NPCC has spent for the advance. The recovery shall be made on the pro-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Rate: For the purpose of conversion of Iraqi Dinars to US Dollars, the exchange rate of 1 Iraqi Dinars equivalent to 3.37778 US Dollars shall be applicable. 32.9 Refund of Retention Money after Maintenance Period: Necessary or desirable and for that purpose, shall have power to order the Associate to do and -the Associate shall do any or all of the following: - a) Increase or decrease the quantity of any work included in the Agreement b) Quit any such work. c) Change the -character or quality or kind of any such work. d) Change levels, lines, positions and dimensions of any part of the works and e) Execute additional work of any kind necessary for the completion of the works and no such variation shall in any way vitiate or invalidate the Agreement. The value (if any) of all such variations shall be taken into account in ascertaining the amount of the Agreement Price and its completion time. 2.2. Sometime in the year 1988, the parties invoked the arbitration clause. The arbitrator gave an award dated 10.08.2002. Award was given in the currency of Iraq i.e., Iraqi Dinars. Following is the operative portion of the award: A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt: The issue that arises for consideration is whether the High Court should have fixed the date of conversion contrary to the agreement and contrary to the award which is in consonance with the agreement and further reduced the rate of interest. In our considered opinion, when the learned arbitrator had already, in clear terms, stated the date of conversion would be as per the original agreement dated 29.06.1982, the same could not have been changed. That apart, we do not see any justification to change the rate of interest as has been determined by the learned arbitrator. It needs no special emphasis to state that while dealing with an appeal from an order rejecting an application under Section 34 and the principles relating to arbitration. The High Court would not have passed such an order terming it as mid-way approach . In view of the aforesaid, we allow the appeals and set aside both the orders passed by the High Court. Needless to emphasize, whatever the directions given in the award by the learned arbitrator shall govern the field. The amount that has been deposited before this Court in pursuance of the order dated 08.12.2014 be refunded to the appellant. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at payments against monthly account bills shall be made in Iraqi Dinars and US Dollars out of which 35 percent would be in Iraqi Dinars and 65 percent would be in US Dollars. Further, paragraph 32.8 defines the exchange rate for the purposes of conversion of Iraqi Dinars to US Dollars and the exchange rate being 01 Iraqi Dinar equivalent to 3.37778 US Dollars. 8. We do not find any mention of payment being made in the Indian Currency i.e. INR from the agreement. Once there is no contract between the parties of making payment in Indian Currency INR, then, there would be no question of determining or finding out any date of conversion. 9. Next, we need to examine the award and directions issued therein whether the award contained any stipulation of making the payment in Indian currency. The operative portion of the award contains three directions: a) The present appellant NPCCL shall pay Iraqi Dinars of 2,23,777.14 to the respondent RCCPL along with the interest at the rate of 12 percent per annum from the date of commencement of arbitration proceedings i.e. 26.09.1988 to the date of payment. b) The second direction was that NPCCL to pay Rs. Twenty Lakhs to the RCCPL alon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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