Authority: Supreme Court of India, Civil Appellate Jurisdiction
Order Date: 28 October 2026
Case Overview
- Appeal No(s). of 2026 (arising out of SLP (C) No. 14005 of 2026) filed by M/S Royal Construction Company Pvt. Ltd. (appellant) against M/S National Projects Construction Corporation (respondent).
- The dispute stems from an internationally seated arbitration award dated 10 August 2002 in favour of the appellant, denominated in Iraqi Dinars.
- The award was challenged in Indian courts; the Supreme Court, by judgment dated 24 February 2015, reiterated minimal judicial intervention and restored the award’s directions.
- Execution proceedings were initiated before the High Court of Delhi. On 26 July 2017, the High Court ordered that the award‑debtor could discharge liability in Indian rupees using the exchange rate of 26 September 1982 (date of the underlying agreement).
- The appellant appealed this order; the Division Bench of the High Court, on 17 December 2019, set aside the Single Judge’s order and certified a substantial question of law under Articles 134‑A and 133(1)(a) of the Constitution: "In terms of the agreement dated 29 June 1982, what should be the relevant date for conversion of awarded sum from USD to INR?"
- The Supreme Court answered this question on 10 October 2023, holding that no occasion arose to determine a conversion date and that the award should be paid in foreign currency; it cautioned against disturbing the award’s terms.
- While execution proceedings continued, the respondent claimed that the principal amount had already been paid in 2009 pursuant to High Court orders. The High Court, by interim order dated 16 February 2026, allowed the parties to seek clarification from the Supreme Court on this point.
- The appellant filed a Miscellaneous Application (Diary No. 48152 of 2026) seeking modification of the 10 October 2023 judgment on the ground that amounts deposited in Indian rupees had been withdrawn by the respondent in 2009.
Final Outcome
- Justice Vikram Nath, delivering the judgment, held that the Division Bench had erred in expanding the scope of the earlier Supreme Court judgment, which was confined to the legal question of conversion date and did not address factual matters such as amounts deposited or withdrawn.
- The Court emphasized that it cannot assume a supervisory role over ongoing execution proceedings; such matters must be decided by the competent executing court.
- Consequently, the Miscellaneous Application is dismissed.
- The appellant is at liberty to raise any objections or contentions regarding adjustment or set‑off of the amounts before the executing court, in accordance with law.
- The Court expressed concern over the protracted litigation spanning nearly three decades and directed the Law Commission of India to undertake a focused study on the statutory and procedural framework governing enforcement and execution of arbitral awards, with a view to recommending legislative or procedural reforms.
- The Registry is instructed to forward a copy of this judgment to the Hon’ble Chairman of the Law Commission of India.
- All pending applications, if any, stand disposed of.
Topics: Arbitration Enforcement, Supreme Court Judgment