DLF Ltd. vs KONCAR Generators And Motors Ltd. 2024 INSC 593 – Foreign Arbitral Award – Conversion Foreign Currency

Arbitration and Conciliation Act, 1996- What is the correct and appropriate date to determine the foreign exchange rate for converting the award amount expressed in foreign currency to Indian rupees? foreign arbitral award is enforceable when the objections against it are finally decided- The relevant date for determining the conversion rate of foreign award expressed in foreign currency is the date when the award becomes enforceable- What would be the date of such conversion, when the award debtor deposits some amount before the court during the pendency of proceedings challenging the award – When the award debtor deposits an amount before the court during the pendency of objections and the award holder is permitted to withdraw the same, even if against the requirement of security, this deposited amount must be converted as on the date of the deposit- After the conversion of the deposited amount, the same must be adjusted against the remaining amount of principal and interest pending under the arbitral award. This remaining amount must be converted on the date when the arbitral award becomes enforceable, i.e., when the objections against it are finally decided.

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