How to ascertain relevant date for conversion of currency in action to recover money payable in foreign exchange?

 This Court recognized the principle that a determination of relevant date for conversion of currency would first take place in accordance with the contractual provision and thereafter, if such explicit determination is not available, then the court would have to determine the best possible date.

25. Further this Court recognized the discretion of the Court to select the relevant dates and pointed out some of them in the following manner-

24. In an action to recover an amount payable in a foreign currency, five dates compete for selection by the Court as the proper date for fixing the rate of exchange at which the foreign currency amount has to be converted into the currency of the country in which the action has been commenced and decided. These dates are:

(1) the date when the amount became due and payable;

(2) the date of the commencement of the action;

(3) the date of the decree;

(4) the date when the Court orders execution to issue; and

(5) the date when the decretal amount is paid or realised.

25. In a case where a decree has been passed by the Court in terms of an award made in a foreign currency a sixth date also enters, the competition, namely, the date of the award. The case before us is one in which a decree in terms of such an award has been passed by the Court.

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 5681/2018 (Arising out of SLP (C) No. 6286 of 2017)

Decided On: 18.05.2018

 Meenakshi Saxena Vs. ECGC Ltd. and Ors.

Hon'ble Judges/Coram:

N.V. Ramana and S. Abdul Nazeer, JJ.

Citation:(2018) 7 SCC 479.

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