1. Application for modification of a money decree under Section 132 and Section 151 of the Civil Procedure Code to increase the amount based on currency fluctuations. (Para 4 )
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1995 Supreme(SC) 614
SUPREME COURT OF INDIA
G.T.Nanavati : J.S.Verma : Sujata V.Manohar
Chiyoda Corporation
Versus
National Fertilisers Limited
Case No. : of 1995
Date of Decision : 4/28/95
A decree passed for a specific amount in local currency, as claimed in the plaint, cannot be modified under Section 152 or 151 of the CPC to increase the amount based on subsequent fluctuations in foreign currency exchange rates.
Headnote:(A) Civil Procedure Code, 1908 - Sections 151 and 152 - Modification of decree - Decree passed for a specific amount in local currency as per the relief claimed in the plaint - Subsequent application for modification to increase the amount based on the rise in value of foreign currency - No case for modification under Section 152 as the relief was granted in terms of the unamended plaint - Inherent powers under Section 151 not available for granting relief not claimed in the plaint. (Para 5)
(B) Conversion of currency - Where a decree is sought and passed in terms of local currency specified in the relief clause of the plaint, the question of conversion of foreign currency to local currency does not arise, and principles regarding the relevant date for such conversion are inapplicable. (Para 6)
Facts of the case:
The appellant obtained a decree for a specific amount of money in local currency along with interest. Following the decree, the appellant filed an application for modification to increase the decreed amount due to the rise in the value of a foreign currency. The High Court dismissed the application, leading to the present appeal.
Findings of Court:
The court held that since the decree was in accordance with the relief claimed in the unamended plaint, there is no scope for modification to increase the amount.
Issues: Whether the dismissal of an application for modification of a decree, seeking an increase in the amount based on foreign currency fluctuations, calls for interference when the original decree was passed for a specific amount in local currency as claimed in the plaint.
Ratio Decidendi: A decree cannot be modified to grant relief that does not arise out of the relief claimed in the plaint. When a decree is specifically sought and passed in local currency, the court cannot adjust the amount based on currency conversion rates or use inherent powers to provide relief not prayed for in the original pleadings.
Result: The appeal is dismissed accordingly.
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2. Whether a decree passed in a specific currency can be modified to increase the amount based on the rise in value of a foreign currency. (Para 4 , 6 )
3. Modification of a decree to increase the amount is impermissible if the relief was not claimed in the unamended plaint and does not fall under Section 152. (Para 5 , 6 )
4. A decree cannot be modified to grant relief not claimed in the plaint, nor can inherent powers under Section 151 CPC be used for such modification. (Para 5 )
5. Appeal dismissed. (Para 7 )
6. Can a decree be modified to increase the amount based on currency fluctuations if the original relief was specified in a fixed currency?
No. If the decree was sought and passed in terms of a specific currency specified in the relief clause of an unamended plaint, it cannot be modified to increase the amount based on foreign currency fluctuations. (Para 5 , 6 )
7. Does Section 152 of the Civil Procedure Code allow for the increase of a decreed amount to reflect current currency values?
No. Section 152 CPC does not provide a basis for modifying a decree to increase the amount decreed in rupees when such relief does not arise from the claims in the plaint. (Para 5 )
8. Can the inherent powers of the court under Section 151 of the Civil Procedure Code be used to modify a decree to grant relief not claimed in the plaint?
No. The inherent powers of the court under Section 151 CPC are not available to modify a decree to grant further relief that was not sought in the original plaint. (Para 5 )
(1) IN spite of notice for final disposal, none appears for the respondents.
(2) LEAVE granted.
(3) THE only question is whether dismissal of the appellants application made under section 132 read with Section 151 Civil Procedure Code for modification of the decree passed in the suit in the plaintiff-appellants favour calls for any interference.
(4) ADMITTEDLY, the plaintiff claimed a decree for a specific amount of money specified in rupees in the relief clause of the plaint together with interest thereon at the rate of 12% per annum for which a decree was passed in its favour. However, by the aforesaid subsequent application made after the passing of the decree, without there being any amendment in the plaint, the appellant prayed for modification of the decree by increasing the amount decreed in terms of rupees on the basis of the rise in the value of Japanese yen in the meantime. This application has been dismissed by the High court. Hence this appeal by special leave.
(5) THE decree being admittedly in terms of the relief claimed in the plaint which remains unamended, there is no case for modification of the decree in exercise of the powers under Section 152 Civil Procedure Code by increase of the amount decreed in rupees. There is no scope for grant of this further relief by modification of the decree since it does not arise out of the relief claimed in the plaint. Obviously the inherent powers of the court under Section 151 Civil Procedure Code are also not available in this situation.
(6) LEARNED counsel for the appellant submitted that according to the decision in Renusagar Power Co. Ltd. v. Ganesh Electric Co. it is the date of the judgment/decree which is the relevant date for conversion of the amount decreed from foreign to Indian currency. In our opinion, that principle has no application to the facts of the present case where a decree was sought and passed in terms of rupees specified in the relief clause of the plaint. The question of conversion of the foreign currency to Indian currency does not, therefore, arise in the present case. This being so, this appeal must fail.
(7) THE appeal is dismissed accordingly
