While Dahake's film, based on a best-selling novel of the same name, is an adolescent love story, Nair's movie debut is a satirical look at Delhi's nouveau riche and relationship with their servants, exposed through the eyes of a visitor from abroad.
Nair, who was given the award by filmmaker Suhasini Ratnam at the recently concluded festival, said he was happy to see the "film resonate with German audiences in such a positive way".
"The entire team is delighted to have received this award as an endorsement of the message and theme of the movie. It was really wonderful to see the film resonate with German audiences in such a positive way.
"The Indian Film Festival of Stuttgart had a wonderful selection of films, watched by extremely enthusiastic audiences and we're proud to have been a part of it," Nair said.
'Delhi In A Day' stars Victor Banerjee, Lillete Dubey, Kulbhushan Kharbanda, Anjali Patil and Welsh actor Lee Williams and will hit the Indian theatres on August 24.
Nair's second feature film "Umrika" was selected for the Sundance Screenwriter's Lab 2012 and was invited to attend Canne Producers Network.