RENUSAGAR POWER CO. LTD. ETC. versus GENERAL ELECTRIC CO. ETC.

RENUSAGAR POWER CO. LTD. ETC. versus GENERAL ELECTRIC CO. ETC.

Enforcement of foreign arbitral awards in India is governed strictly by Section 7 of the Foreign Awards (Recognition and Enforcement) Act, 1961. 'Public policy' refers only to Indian public policy, not foreign jurisdictions. Violations of fundamental Indian law, interests, or morality may bar enforcement, but mere statutory contravention does not. FERA-compliant awards are enforceable if government approved; compound interest is permissible; and currency conversion should occur at the decree date rate.

Parties
Appellant: Renusagar Power Co. Ltd.; Respondent: General Electric Co.
Jurisdiction
India
Judgment Date
17 October 1993
Procedural Posture
Civil Appeal / Appeal From High Court Judgment; Final Judgment by Supreme Court
Outcome
Appeals dismissed. Decree of High Court affirmed.
Legal Topics
Scope of Enquiry for Foreign Award Enforcement, Public Policy Exception, FERA Compliance, Compound Interest in Arbitration, Currency Conversion for Decree, Unjust Enrichment
Arbitration Foreign Award Enforcement Scope of Enquiry for Foreign Award Enforcement Public Policy Exception FERA Compliance Compound Interest in Arbitration Currency Conversion for Decree Unjust Enrichment

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Parties

Renusagar Power Co. Ltd.

Appellant

General Electric Co.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment; Final Judgment by Supreme Court

Legal Issues

  1. 1 Whether the enforcement of the foreign arbitral award is barred for being contrary to public policy under S.7 of the Foreign Awards (Recognition and Enforcement) Act, 1961
  2. 2 Whether violation of FERA would preclude enforcement of the award
  3. 3 Whether the award of compound interest is against public policy

Ratio Decidendi

Enforcement of foreign arbitral awards in India is governed strictly by Section 7 of the Foreign Awards (Recognition and Enforcement) Act, 1961. 'Public policy' refers only to Indian public policy, not foreign jurisdictions. Violations of fundamental Indian law, interests, or morality may bar enforcement, but mere statutory contravention does not. FERA-compliant awards are enforceable if government approved; compound interest is permissible; and currency conversion should occur at the decree date rate.

Court Disposition

Appeals dismissed. Decree of High Court affirmed.

Orders

  • Renusagar to pay General Electric US$12,333,355.14; US$6,289,800 already paid, balance US$6,043,555.14 payable and to be converted to INR at judgment date exchange rate (Rs.31.53 per USD), resulting in Rs.19,05,53,293.56; interest at 18% per annum from judgment till payment; parties to bear their own costs.
  • Application to substitute Hindalco Industries Ltd. as appellant rejected.