J. N. BHATT, K. M. MEHTA, J.

( 1 ) THE appellant - Oil and Natural Gas Corporation (ONGC) has challenged the judgment and order dated 22/3/2000 recorded by 6th Joint Civil Judge (S. D.) Vadodara in Arbitration Misc. Civil Application No. 106 of 1999, whereby, the application u/s. 14 of the Indian Arbitration Act, 1940 has been made rule of Court with slight modification by invoking the test of the provision of section 37 (1) (vi) of the Arbitration Act, 1940 (1940 Act ).

( 2 ) A resume of the material facts giving rise to this appeal may, briefly, be narrated so as to appreciate the merit of the present appeal at the admission stage and in order to appreciate the merits the learned advocate appearing for the appellant - ONGC placed reliance on the documentary evidence which was placed for our consideration at the admission stage. Following aspects have remained uncontroverted - (1) Agreement was entered into on 25/4/1991 between the original claimant Essar Steel Ltd. and respondent ONGC for deployment of drilling rig for the purpose of drilling and to carry out auxiliary operation for the purpose of producing oil and/or gas in Gandhar belt. The disputes and differences between the parties had arisen under the said agreement and therefore, as per the terms incorporated in the agreement, the dispute upon failure to be resolved mutually between the parties, was required to be referred to Joint Director in terms of the contract. Claimant Essar Steel filed its statement of claims before the Arbitrators, which was resisted by the respondent ONGC appellant before us. The Arbitrators after hearing the parties and considering all the documentary evidence and pleadings recorded award on 23/3/1999 rejecting the claim nos. 1 and 3 while granting claims nos. 2, 4, 5 and 6. Thereafter the Arbitrators moved the Court by giving an application and praying that the award be taken on record for further necessary statutory action.

( 3 ) UPON filing of such application, obviously notice came to be issued to the parties. Respondent ONGC filed written objections at exh. 11; whereas the claimant Essar Steel Ltd. filed reply to the said objections at exh. 14. Whereas exh. 16 is affidavit-in-rejoinder filed by the respondent. The respondent inter-alia contended that the award passed by the Arbitrator in respect of claims nos. 2, 4, 5 and 6 is against the terms and conditions of the contract. The Arbitrators have not applied their minds to the specific provisions of the contract, pleadings and documentary evidence and have ignored specific provision of contract regarding payment to the claimants. It was also the case of the respondent that the contract provided that all the payments shall have to be made in Indian currency; whereas the Arbitrators while granting claims of the claimant has allowed the claims in terms of US Dollars and while granting the claims the Arbitrators have failed to convert the US Dollars in Rupees. In that context it was also submitted that the value of Dollars is increasing because of devaluation of Rupees. The rate of interest awarded at 12% was alleged to be exorbitant. It was also contended that the Arbitrators have wrongly awarded claim no. 2 and claim no. 4. The Arbitrators have exceeded the jurisdiction vested in them was also one of the objections raised by the respondent ONGC , who is appellant before us. One of the objections was with regard to the loss of equipments and tools and the respondent pleaded that the responsibility was solely on the part of the claimant.

( 4 ) THE trial Court after considering the facts and circumstances, rival contentions and the record of the case found that the objections raised by the appellant original respondent - ONGC are not sustainable and, therefore, objections came to be dismissed. However, award came to be modified as stated hereinbefore. Award is also modified so far as claim nos. 2 and 5 are concerned wherein interest at 11% p. a. on US Dollar instead of 12% from the due date t

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