In an important decision regarding enforcement of arbitral awards, the Delhi High Court held that the relevant date for currency conversion of the sum awarded would be the date of passing of a decree.
Relying on an earlier Supreme Court of India verdict, the Court said that the date for determining the conversion rate should be the date on which the decree finally becomes enforceable under Section 49 of Indian Arbitration and Conciliation Act, 1996 (“Act”), i.e. the day on which all the objections under Section 48 of the Act are dismissed / disposed of by the final appellate court and no further proceedings remain pending.
The Court, however, refused to grant any interest on the sum awarded for the period from the date of institution of enforcement proceedings till passing of decree and subsequently till the date of actual payment as being barred under the Act.
The Court said that the territoriality principle of the Act precludes Part I from being applicable to an arbitration seated outside India, thus creating a serious lacuna in the Act.