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TMI Blog2023 (10) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... of the awarded sum from USD to Indian rupees?" 2. Relevant facts necessary for adjudication of the issue are as follows: 2.1. An agreement was executed between the parties to carry out earth work in Iraq by the Royal Construction Company Private Limited RCCPL given by the National Projects Construction Corporation Limited NPCCL. According to the contract, Clauses 31 and 32 of the agreement along with their sub-paragraphs relate to payments and advances, the same are reproduced hereunder: "31. PAYMENTS AND ADVANCES: All amounts and schedule of prices as mentioned in the Agreement documents 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gross value of each R.A. Bills subject to a total deduction of 5% of the contract value. 32.6 Currency: Payments against monthly account bill's shall be made to the Associate by the NPCC in Iraqi Dinars and US Dollars. i) 35 % Iraqi Dinars ii) 55 % US Dollars 32.7 Payments not to be deemed as the Acknowledgements: Payments made to the Associate shall not be deemed as the acknowledgement on the part of the contractor, of acceptance of work and any part thereof and/or of materials and workmanship etc. 32.8 Exchange 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hatever directions have been given in the award by the learned Arbitrator would govern the field. This Court had further held that the date of conversion would be as per the original agreement dated 26.09.1982, as the learned Arbitrator had already in clear terms said so. It further was of the view that the midway approach of the Division Bench by reducing the rate of interest was also not justified. It would be beneficial to reproduce the last two paragraphs of the judgment of this Court: "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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s given by the learned arbitrator in the award will govern the field. 6. It is very clear from the above that we have to fall back upon the terms of the agreement for the purposes of deciding the question regarding the date of conversion. 7. In the entire agreement, the relevant paragraphs dealing with the payments and advances and the payments of work in progress is laid down in paragraphs 31 and 32 and its sub-paragraphs. Paragraph 32.6 of the agreement states that 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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