Supreme Court Clarifies Forex Conversion Date for Arbitral Awards Enforcement

Thursday, 8 August 2024, 16:44

The Supreme Court has established that the conversion date for foreign arbitral awards into Indian rupees is when the award becomes enforceable. This ruling emerged from a legal dispute involving DLF Ltd and Koncar Generators and Motors. By clarifying the date for currency conversion, the court addresses significant uncertainties related to the enforcement of international awards, benefiting parties involved in future arbitration proceedings.
Economictimes
Supreme Court Clarifies Forex Conversion Date for Arbitral Awards Enforcement

Supreme Court Ruling on Forex Conversion Date

The Supreme Court has recently made a pivotal ruling regarding the conversion rate for foreign arbitral awards into Indian rupees.

Date of Conversion

According to the court's decision, the conversion date shall be defined as the moment when the award becomes enforceable.

Significance of the Decision

  • Clarification: This ruling clarifies major uncertainties surrounding currency conversion and enforcement.
  • Impact: It directly affects how arbitral awards are interpreted and executed in India.

Case Background

The case was rooted in a dispute between DLF Ltd and Koncar Generators and Motors, concerning an award from the International Chamber of Commerce.

Conclusion

This ruling is expected to streamline processes related to foreign arbitral awards, providing much-needed clarity for businesses engaged in international arbitration.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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