JUDGMENT

PAMIDIGHANTAM SRI NARASIMHA, J.

1. The issue arising in the present appeal relates to enforcement of an arbitral award expressed in foreign currency. In this context, two questions arise for consideration. First, 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. Second, 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. Two uncertainties have a direct bearing on the question to be answered, the time lapse between the date of the award and its enforceability-a local factor, and the ever-fluctuating exchange rates- a global factor.

1.1 Taking into account these two factors and the statutory provisions, coupled with the decisions of this Court, we have formulated twin principles: First, following the principle in Forasol v. Oil and Natural Gas Commission¹ 1984 Supp SCC 263, the date when the arbitral award becomes enforceable shall be the date for conversion. Under the Arbitration and Conciliation Act, 1996² [Hereinafter ‘the Act’] this date is when the objection