STATE TRADING CORPORATION OF INDIA LTD. versus M/S GLOBAL STEEL HOLDING LIMITED & ORS.

Citation: [2018] 14 S.C.R. 1111 · Decided: 06-12-2018 · Supreme Court of India · Bench: ABHAY MANOHAR SAPRE · Disposal: Disposed off
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Judgment (excerpt)

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STATE TRADING CORPORATION OF INDIA LTD.
v.
M/S GLOBAL STEEL HOLDING LIMITED & ORS.
(Civil Appeal No. 11907 of 2018)
DECEMBER 06, 2018
[ABHAY MANOHAR SAPRE AND INDU MALHOTRA, JJ.]
Constitution of India: Arts 142 and 136 – Extra-ordinary
jurisdiction – Exercise of – Jurisdiction of this Court to decide the
limited issue of payment of interest where award amount has already
been paid – Held: There is no legal impediment in deciding the
issue of payment of interest and its rate when the parties have
requested for termination of the proceedings, and outstanding dues
have already been cleared by the respondents-judgment-debtors
during the pendency of this appeal leaving only a limited issue
regarding payment of interest – Issuance of direction to the
respondents to pay interest on the principal sum of Rs. 1610 crores
to the appellant-decree holder, at the rate of 8% p.a. payable from
the date it became due – Interest.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 11907
of 2018.
From the Judgment and Order dated 09.03.2015 of the High Court
of Delhi at New Delhi in Execution Petition No. 337 of 2014.
With
Contempt Petition (C) Nos. 747 of 2017,1058 of 2018 and Contempt
Petition (C) D. No. 24803 of 2018.
P. S.Narasimha, ASG, Dushyant Dave, Kapil Sibal, Sr.Advs., Uday
Gupta, Ms.Shivani Lal, Hiren Dasan, Tarkeshwar Nath, Ms.Priyanka,
M. K.Tripathi, Mrs.Sarla Chandra, Amarjeet Singh, Shiv Atangal Sharma,
Ms.Binu Tamta, Mrs.Anil Katiyar, Ms.Anshul Sharma, Mohit D. Ram,
Gautam Mittra, Pankaj Baghla, Samar Singh Khachawa, Ms. Dipali
Dwivedi, Risad Medora, Lokesh Chopra, Avishkar Singhvi, Ms.Anju Jain,
Hitesh Sachar, Anuj Bhandari, Advs. for the appearing parties.
[2018] 14 S.C.R. 1111
1111
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The Judgment of the Court was delivered by
ABHAY MANOHAR SAPRE, J.
In S.L.P.(C) No.14585/2015
1. Leave granted.
2. This appeal is filed against the final judgment and order dated
09.03.2015 passed by the Delhi High Court in Execution Petition No.337
of 2014 with EA Nos.697-98 of 2014 and EA Nos.199-200 of 2015
whereby the High Court has dismissed the Execution Petition and the
accompanying applications filed by appellant - STC herein on the ground
of lack of jurisdiction.
3. In order to appreciate the controversy involved in this appeal, it
is necessary to set out the relevant facts hereinbelow.
4. On 04.04.2005, a tripartite agreement was entered into between
the appellant i.e. State Trading Corporation a Government-owned
Corporation (hereinafter referred to as “STC”), respondent No.1 - M/s
Global Steel Holding Ltd. (hereinafter referred to as “GSHL”),
incorporated in the Isle of Man Channel Islands, and respondent No. 2 -
M/s Global Steel Philippines Inc., incorporated in the Philippines
(hereinafter referred to as “GSPI”). Respondent No. 3 is Mr. Pramod
Mittal, the Chairman of the respondent nos. 1 and 2 companies, i.e.
GSHL and GSPI. The agreement was for purchase and sale of
commodities known as - HR Coils and CR Coils.
5. Mr. Dushyant Dave, learned senior counsel appeared for the
appellant – STC, while the respondents were represented by Mr. Kapil
Sibal, Senior Advocate along with Mr. Gautam Mittra.
6. In performance of the agreement, disputes arose between the
parties, particularly with respect to the non-payment of outstanding dues
to the appellant - STC. The parties, therefore, decided to settle their
disputes by means of conciliation proceedings with the assistance of
two Conciliators.
7. The parties (STC, GSHL and GSPI) entered into a Settlement
Agreement under Section 73 of the Arbitration and Conciliation Act,
1996 (for short “the Act”) on 15.11.2011.  In terms of the Settlement
Agreement, the GSHL and GSPI agreed to pay a total amount of US$
355,818,019.29 with interest @ 13.25% p.a. by 11.05.2012 as per para
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(D) of the Settlement Agreement to the appellant – STC, and in the
manner set out in detail in clauses A to K of the Settlement Agreement.
8. The GSHL and GSPI paid some amounts pursuant to the
Settlement Agreement to STC. However, they failed to ensure full
compliance with the terms of the Settlement Agreement dated 15.11.2011
and committed default in paying full payment to appellant - STC.
9. The parties therefore entered into a Further Settlement
Agreement dated 17.05.2012 through the intervention of the Conciliators.
10. As per the Further Settlement Agreement dated 17.05.2012,
GSHL and GSPI
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