TaxTMI 
TaxTMI 
2018 (5) TMI 1969
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....ing manner­ Clause 13­ Percentage of loss payable: The portion of the amount of loss which the Corporation hereby agrees to pay shall be 90%. 4. It would be necessary to note that the parties had explicitly included a clause concerning the rate of currency exchange in the following manner­ Clause 17 ­ Rate of Exchange: All payments under this policy shall be in Indian Rupee at the head office of the Corporation and, for the purpose of payment of premiums and losses, the gross invoice value of the shipments invoiced in a foreign currency shall be converted into Indian Rupee at the Bank buying rate of exchange at Mumbai on the date of the relative shipment PROVIDED THAT, devaluation of the currency in which the buyer has to pay takes place before the claim is paid, the amount claimed in Indian currency shall be based on the devalued rate. 5. Coming back to the narration of the facts, appellant had sent a consignment of the goods by invoice no. 1, dated 01.04.2002, to M/s. Parveena Enterprises (NF) France for value of 11875.75 Euro vide bill of Lading No. PONLDEL 27008966 dated 24.04.2002. Even though the purchaser of the goods accepted the deli....
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.... OP was to pay the amount in Indian currency whichever was the value of Euro. Specifically, when court is passing an order for payment of amount as value of Euro the OP is bound to pay the value of Euro when he is making the payment. Order of this forum was passed in 2006 but till 2013 ECGC has not paid the amount to the complainant in compliance of the order. Now at this stage it is well settled law that executing court cannot go behind the decree under execution. In view of the order of this Forum, the ECGC has to pay the value of Euro when he is paying the amount. Amount is to be paid in value of Euro whichever value exists at the time of payment, in compliance with the order of this Forum. In view of the above discussion, certainly ECGC has not paid the complete amount as per order passed by this Forum. Hence ECGC is further directed to pay the amount (sic) (emphasis supplied) 11. Respondent/insurance company being aggrieved by the aforesaid order of the Executing Court approached the State Commission of Haryana in Revision Petition No. 66 of 2014. The State Commission of Haryana did not find any merit in the petition and dismissed the same. Again, the respondent approach....
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....he insurance contract, the opposite party insurer was required to pay the insurance claim as per the conversion rate of the invoiced foreign currency in Indian rupee as per the bank buying rate of interest at Mumbai on the date of subject shipment for which the invoice was issued. Undisputedly, sum of Rs. 11,23,906 paid by the judgment debtor was calculated on the basis of conversion rate applicable at the time of shipment of invoiced value and the interest awarded by the consumer forum. Therefore, it cannot be said that any further amount is due from the opposite party under the decree. Both the fora below have passed the impugned order in utter disregard of the expressed term no. 17 of the insurance contract. The order thus suffers from material irregularity and cannot be sustained. 14. Aggrieved by the order of the NCDRC, the petitioner is in appeal before this Court by a special leave petition. 15. Heard counsel appearing on behalf of both parties and perused the material available on record. 16. Before we dwell on to the merits of this case, we would like to note certain aspects of execution of a decree. Section 25 and 27 of the Consumer Protection Act, 1986, provides....
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....it becomes the bounden duty of the court to interpret the decree in the process of giving a true effect to the decree. At that juncture the executing court has to be very cautious in supplementing its interpretation and conscious of the fact that it cannot draw a new decree. The executing court shall strike a fine balance between the two while exercising this jurisdiction in the process of giving effect to the decree. 19. In the facts and circumstances of the case there is no dispute about the fact that the liability of the respondent company to a tune of 90% value of 11875.75 Euros with interest at the rate of 12% from 24.7.2002 has attained finality. As per the calculation memo filed by the appellant in execution proceedings she claimed total amount of Rs. 25,76,883.00 i.e principal amount of Rs. 7,61,105.00 calculated @ Rs. 71.21 per Euro as on 17.4.2013 being 90% value of 11,875.75 Euros. Further interest granted by the court from 24.7.2002 to 24.4.2013 to a tune of Rs. 18,12,478.00. 20. Admittedly, during the pendency of the execution proceedings an amount of Rs. 4,86,953 as 90% value of 11,875.75 Euros as on 24.4.2002 and interest thereon of Rs. 6,33,653 as directed by ....
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....Forasol filed an application for execution of the award being Execution No. 77 of 1976. ONGC objected to the aforesaid execution by contending that the rate specified in the award was to be limited to the interest granted thereon and the same does not affect the main contractual amount. The learned single Judge negatived all the contentions of ONGC. On appeal before the Division Bench, the High Court accepted the contention of ONGC and therefore, Forasol appealed before this court. The question before the court was concerning choosing the best date for the rate of conversion was expressed as under­ 23. The question which now remains to be considered in Forasol's appeal is the date to be selected by the Court for converting into Indian Rupees the French Franc part of the said award in respect of which no rate of exchange has been fixed either by the said contract or the said award. (emphasis supplied) 24. This Court recognized the principle that a determination of relevant date for conversion of currency would first take place in accordance with the contractual provision and thereafter, if such explicit determination is not available, then the court would have to ....
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....mount as converted into Indian rupees and his prayer in the plaint can only be for a sum in Indian currency. For this purpose, the plaintiff would have to convert the foreign currency amount due to him into Indian rupees. He can do so either at the rate of exchange prevailing on the date when the amount became payable for he was entitled to receive the amount on that date or, at his option, at the rate of exchange prevailing on the date of the filing of the suit because that is the date on which he is seeking the assistance of the court for recovering the amount due to him. In either event, the valuation of the suit for the purposes of court fees and the pecuniary limit of the jurisdiction of the court will be the amount in Indian currency claimed in the suit. The plaintiff may, however, choose the second course open to him and claim in foreign currency the amount due to him. In such a suit, the proper prayer for the plaintiff to make in his plaint would be for a decree that the defendant do pay to him the foreign currency sum claimed in the plaint subject to the permission of the concerned authorities under the Foreign Exchange Regulation Act, 1973, being granted and that in the e....
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....of the decree being challenged in appeal or other proceedings and such appeal or other proceedings being decided in whole or in part in favour of the plaintiff, the appellate court or the court hearing the application in the other proceedings challenging the decree should follow the same procedure as the trial court for the purpose of ascertaining the rate of exchange prevailing on the date of its appellate decree or of its order on such application or on the date nearest or most nearly preceding the date of such decree or order. If such rate of exchange is different from the rate in the decree which has been challenged, the court should make the necessary modification with respect to the rate of exchange by its appellate decree or final order. In all such cases, execution can only issue for the rupee equivalent specified in the decree, appellate decree or final order, as the case may be. These questions, of course, would not arise if pending appeal or other proceedings adopted by the defendant the decree has been executed or the money thereunder received by the plaintiff. 27. In the light of the ratio laid down by this court in determining the relevant date for conversion of cu....