NATIONAL PROJECTS CONSTRUCTION CORPORATION LIMITED versus ROYAL CONSTRUCTION COMPANY PRIVATE LTD.

Citation: [2023] 15 S.C.R. 393 · Decided: 10-10-2023 · Supreme Court of India · Bench: ANIRUDDHA BOSE · Disposal: Disposed off

Judgment (excerpt)

[2023] 15 S.C.R. 393 : 2023 INSC 899
393
CASE DETAILS
NATIONAL PROJECTS CONSTRUCTION CORPORATION 
LIMITED
v.
ROYAL CONSTRUCTION COMPANY PRIVATE LTD.
(Civil Appeal No. 1991 of 2019)
OCTOBER 10, 2023
[ANIRUDDHA BOSE AND VIKRAM NATH, JJ.]
HEADNOTES
Issue for consideration: Whether the arbitration agreement, arbitral 
award or the judgment of Supreme Court dated 24.02.2015 passed in earlier 
round of litigation between the parties, provided for payment of the awarded 
amount in Indian currency.
Arbitration – Amount awarded in Iraqi Dinars if was to be 
converted in Indian currency:
Held: Neither the arbitration agreement, arbitral award or the judgment 
of Supreme Court dated 24.02.2015 permit payment of the awarded amount 
in Indian currency except the amount of Rs. 20 lacs with admissible interest 
against the encashment of bank guarantee – Thus, there would be no question 
of the amount awarded in Iraqi Dinars to be converted in Indian currency 
– The only conversion permissible was in US Dollars – Thus, the question 
referred by the impugned judgment to be answered by this Court that in 
terms of the agreement between the parties and in light of the judgment 
dated 24.02.2015 of the Supreme Court, what should be the relevant date for 
conversion of the awarded sum from USD to Indian rupees may not arise at 
all – There is no occasion or requirement for determining or fi xing any date 
for conversion of the US Dollars into Indian Currency (INR) – No issue was 
raised by the parties with regard to contents of the agreement or the award or 
the proceedings undertaken till the impugned order by the Division Bench 
had been passed referring the question under Article 134A of the Constitution 
– The agreement is thus binding on the parties – The award has attained 
fi nality and the orders passed in the multiple rounds of the litigations are 
394 
SUPREME COURT REPORTS 
[2023] 15 S.C.R.
also not in issue – The payment has to be made in the foreign currency only 
along with computed interest – It would be open for the parties to pay and 
the other parties claiming to accept the Indian currency either at the current 
rate or at the agreed rate – But, this Court cannot meddle with the terms of 
the agreement or the award or the directions contained in the judgment of 
this Court dated 24.02.2015 inter alia holding that the date of conversion 
would be as per the original agreement and the directions given by the 
arbitrator in the award will govern the fi eld – RCCPL at liberty to continue 
with its execution proceedings in accordance with law – Constitution of 
India – Article 134A – Arbitration and Conciliation Act, 1996 – ss.34, 37. 
[Paras 3, 5, 12 and 13]
OTHER CASE DETAILS INCLUDING IMPUGNED 
ORDER AND APPEARANCES
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1991 of 2019.
From the Judgment and Order dated 17.12.2018 of the High Court of 
Delhi at New Delhi in EFA (OS) No. 19 of 2017.
With
Civil Appeal No. 2528 of 2019.
Appearances:
Dhruv Mehta, Sanjay R. Hegde, Sr. Advs., Rajat Arora, Sarvam Ritam 
Khare, Ms. Meena Sehrawat, Ms. Vrinda Kapoor, Shahrukh Ali, Raghav 
Gupta, Ms. Urvi Kuthiala, Advs. for the appearing parties.
JUDGMENT / ORDER OF THE SUPREME COURT
JUDGMENT
VIKRAM NATH, J.
1. These two appeals have been fi led under Article 134A read with 
Article 133(1)(a) of the Constitution of India by the rival parties before the 
High Court of Delhi in EFA (OS) No.19 of 2017. The High Court, by the 
impugned order, certifi ed that the case involved the following substantial 
question of law of general importance which required a decision by this 
Court. 
395
“In terms of the agreement dated 29th June 1982 between the parties 
and in light of the judgment dated 24th February 2015 of the Supreme 
Court of India in Civil Appeal Nos. 2543-44/2015, what should be the 
relevant date for conversion 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 Limited1 
given by the National Projects Construction Corporation Limited2. 
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 Dinars3 and represent 
the total 

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