In Brief
An insurance company (ECGC) issued a policy covering export risks. After goods were not paid for, the company paid only 79.5% of losses instead of the contracted 90%. A consumer forum ordered 90% payment in Euros converted at the bank buying rate on the shipment date (Clause 17 of the contract), plus interest from 24.7.2002. During execution, the company paid Rs. 11,23,906 using the shipment-date conversion rate. The decree-holder claimed payment should use the date-of-payment rate. The Supreme Court held that contracts expressly fix the conversion date; executing courts cannot alter this. The payment fully satisfied the decree. Appeal dismissed.
The lawyer headnote and full judgment text are available to registered users.