OIL AND NATURAL GAS COMMISSION Vs. FORASOL

JUDGEMENT

(1.) This is an appeal against the order of the learned single Judge since reported in (AIR 1978 Delhi 35) by which he held that the respondent is entitled to Rs. 11,10,780 as claimed by it in the execution petition and interest from the date of the execution petition till the payment 6 per cent. The further direction given was that the appellant ONGC will satisfy the Judgment debt by paying the French Francs, or if they prefer they can satisfy it by paying the equivalent sum in rupees, that is equivalent at the time of the passing of the decree because the rate of exchange will be the rate ruling at the date of the decree.

(2.) The background of this litigation is that on 30-7-1962 the Government of India called for Global Tenders for drilling for the exploration of oil in Jaisalmer desert in Rajasthan. The tender of the respondent was accepted by the Government of India. An agreement was entered into between the Government of India and the Company. In the agreement between the parties clause IX-3.1 provided for currency of payment as follows :

(3.) On May 7, 1975 the award of the Umpire was made rule of the court on an application made by the appellant, without any objection having been raised by the respondent. A decree was passed in terms of the award.