The Supreme Court of India addressed the issue of determining the appropriate date for converting foreign arbitral awards into Indian currency. The judgment provided clarity by establishing that the conversion should occur on the date the award becomes enforceable, i.e., when objections are dismissed and the award attains finality. Additionally, if a partial amount is deposited before the court during ongoing proceedings, the date of deposit should be considered for conversion, as per established legal precedents.

1. Introduction

The appeal dealt with the enforcement of an arbitral award expressed in foreign currency, specifically focusing on the appropriate date for converting the award into Indian rupees.

2. Background

• The dispute originated from a contract between DLF Ltd. (appellant) and Koncar Generators and Motors Ltd. (respondent), which led to arbitration.
• The arbitral tribunal awarded a sum in Euros to the respondent.

3. Issues for Consideration

Two main issues were highlighted:

1. The correct date for determining the foreign exchange rate for conversion.
2. The date for conversion when the award debtor deposits some amount before the court during ongoing challenges.

4. Court's Analysis

• Principle of Finality: The court referred to the principle established in Forasol v. Oil and Natural Gas Commission, emphasizing that the conversion date is when the award becomes enforceable.
• Deposit during Proceedings: Referring to the Renusagar Power Co Ltd v. General Electric Co case, the court held that the date of deposit should be used for conversion when an amount is deposited during the pendency of the challenge.

5. Conclusion

The Supreme Court concluded that in the context of Indian law, the most appropriate dates for conversion are either when the award becomes enforceable or when a deposit is made, ensuring fairness in light of fluctuating exchange rates.