The court established that interest shall be payable on the consolidated amount of the principal plus interest as on the date of the decree. It also clarified the relevant date for conversion of the decretal amount expressed in foreign currency into Indian Rupees.

YOGESH KHANNA, J.

EA (OS) No.392/2017

1. The decree holder moves this application under Order XXI read with Section 151 CPC for direction to the judgment debtor to deposit the decretal amount with interest.

2. The following are the relevant facts for determining this application:-

(a) on 13.02.1981 the decree holder invoked arbitration to be held in London under FOSFA (Fats, Oils, Seeds & Fats Association) Rules as disputes had arisen between the parties consequent to default by the judgment debtor in effecting supplies under the contract dated 12.01.1980;

(b) on 15.11.1989 the original arbitral award was passed. The relevant extract of the award is as under:-

“We AWARD that Sellers shall pay to Buyers within 14 days from the date of this award the sum of US$4,681,000 (Four million six hundred and eighty one thousand United States Dollars) being the difference between the contract price of US$765 per metric tonne plus US$15 per metric tonne for double bags and the settlement price US$2275 plus US$15 per metric tonne for double bags and damages with interest thereon at the rate of 10.5% from 13 February 1981 to the date of this award.”

(c) on 13.05.1990 judgment debtor preferred an appeal under FOSFA Rules against the original award;

(d) on 14.09.1990 an appeal Award passed affirming the original award of 15.11.1989 directing, inter alia, that the judgment debtor shall pay to the decree holder within 14 days from the date of the appeal award a sum of US$ 4,526,000 with interest thereon @11.25% per annum from 13.02.1981 to the date of the appeal award i.e. 14.09.1990. The judgment debtor was also directed to pay the fees, cost and expenses of the appeal amounting to £9,344.55;

(e) on 08.07.1993 the decree holder filed a petition registered as Suit No. 1885 of 1993 (“Suit”) under S. 5 r/w S. 6 of the Foreign Awards (Recognition and Enforcement) Act, 1961 before the Hon’ble Delhi High Court for filing and enforcement of the Appeal Award read with the original award;

(f) on 28.01.2000 the learned Single Judge by his final judgment and order dated allowed the Suit and passed a decree also dated 28.01.2000 as under:-

“This suit coming on this day for final hearing before this Court in the presence of the counsel for the parties as aforesaid, it is ordered that the Award dated 15.11.1989, and confirmed by the appeal award dated 14.9.90 by the Board of Appeal of Federation of Oil and Fats Association Ltd., appended hereto as annexure “A” and “B” is taken on record and made a rule of the Court and a decree is hereby passed in terms of the said award which shall form part of the decree.

It is further ordered that the petitioner shall be entitled to interest @ 18% per annum from the date of the award till the date of realization.

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It is also ordered that the respondent shall make payment of any loss on account exchange variation between the date of Award and the date of actual payment.”

(g) on 26.05.2000 judgment debtor filed an appeal being FAO (O.S.) No.205/2000 before the Division Bench of this Court against the judgment in the Suit;

(h) on 28.02.2001 at the time of admission of the FAO, a stay was granted on execution of the Decree by the Division Bench passed in CM No. 1071 of 2000 in said FAO, against said order dated 28.02.2001, decree holder filed SLP (C) Nos.7033 of 2001 and 14943 of 2001 before the Supreme Court;

(i) on 05.04.2002 the Supreme Court passed an order disposing of SLP (C) Nos. 7033 of 2001 and 14943 of 2001 and modified the order dated 28.02.2001 passed in the FAO by directing that the JD shall furnish either bank guarantee or property security for the principal amount decreed to the Registrar of this Court within eight weeks from the date of the said order failing which the order of stay granted by the this Court would stand vacated;

(j) on 05.08.2002 the Supreme Court was pleased to grant two weeks time to comply with its earlier order dated 05.04.2002;

(k) on 26.08.2002 the Supreme Court directed that if within the