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A foreign arbitral award was held enforceable in India because the payment directed by the award was treated as a current account transaction under FEMA and the Foreign Exchange Management (Current Account Transaction) Rules, 2000. The RBI's affidavit clarified that payment of compensatory damages did not require prior approval or permission, and that the award did not involve transfer of shares. On that basis, the Court found no legal impediment to enforcement and directed that execution proceedings continue expeditiously, with nothing further remaining to be adjudicated.
A foreign arbitral award was held enforceable in India because the payment directed by the award was treated as a current account transaction under FEMA and the Foreign Exchange Management (Current Account Transaction) Rules, 2000. The RBI's affidavit clarified that payment of compensatory damages did not require prior approval or permission, and that the award did not involve transfer of shares. On that basis, the Court found no legal impediment to enforcement and directed that execution proceedings continue expeditiously, with nothing further remaining to be adjudicated.
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