In an increasingly interconnected world, the recognition and enforcement of foreign judgments are vital for ensuring legal certainty and facilitating international trade. In India, the Code of Civil Procedure, 1908 (CPC), provides the framework for recognizing and enforcing foreign judgments. This comprehensive guide explores the key aspects of this legal process, essential for Indian law students.

1. DEFINITION OF FOREIGN JUDGMENT AND FOREIGN COURT

• Foreign Judgment: Section 2(6) of the CPC defines a foreign judgment as “the judgment of a foreign court.” This encompasses any decision by a court situated outside India and not established or continued by the authority of the Central Government.

• Foreign Court: According to Section 2(5) of the CPC, a foreign court refers to “a court situated outside India and not established or continued by the authority of the Central Government.” This definition is crucial for determining the applicability of foreign judgments within Indian jurisdiction.

2. CONCLUSIVENESS OF FOREIGN JUDGMENTS

Section 13 of the CPC stipulates that a foreign judgment is conclusive regarding any matter directly adjudicated upon between the same parties, except in the following cases:

• Lack of Competent Jurisdiction: If the foreign court did not have jurisdiction over the subject matter or the parties, the judgment is not considered conclusive. For instance, in Gurdayal Singh v. Rajah of Faridkot, the Privy Council held that a judgment delivered by a court without jurisdiction is a nullity.

• Not on Merits: A judgment not based on the merits of the case, such as one given on technical grounds, is not conclusive. In Radhamani v. S. Rajan, the Kerala High Court emphasized that a decision must be based on the merits to be enforceable.

• Incorrect View of International or Indian Law: Judgments founded on an incorrect view of international law or a refusal to recognize Indian law, where applicable, are not conclusive. The Supreme Court in Vishwanathan v. Rukn-Ul-Mulk Syed Abdul Wajid held that a foreign judgment ignoring Indian law cannot be enforced.

• Opposed to Natural Justice: Judgments delivered in violation of the principles of natural justice, such as lack of proper notice or denial of a fair hearing, are not conclusive. In International Woollen Mills v. Standard Wool (UK) Ltd., the Supreme Court ruled that a judgment passed without proper service of summons violates natural justice.

• Obtained by Fraud: Judgments obtained through fraud are not conclusive. The Supreme Court in Satya v. Teja Singh held that a decree obtained by fraud is a nullity and can be challenged at any stage.

• Sustains a Claim Founded on Breach of Indian Law: Judgments upholding claims based on a breach of Indian law are not conclusive. In Narasimha Rao v. Venkata Lakshmi, the Supreme Court refused to recognize a foreign divorce decree that violated Indian law.

3. ENFORCEMENT MECHANISM UNDER THE CPC

The enforcement of foreign judgments in India depends on whether the judgment originates from a reciprocating or non-reciprocating territory.

• Reciprocating Territories:

  • Section 44A of the CPC allows for the direct execution of decrees from superior courts of reciprocating territories, as notified by the Central Government in the Official Gazette.

  • A certified copy of the decree, accompanied by a certificate from the foreign court stating the extent of satisfaction, can be filed in a District Court in India.

  • The decree is executed as if it were passed by the Indian court, subject to the exceptions under Section 13.

• Non-Reciprocating Territories:

  • Judgments from non-reciprocating territories cannot be directly executed.

  • The judgment holder must file a fresh suit in an Indian court based on the foreign judgment or the original cause of action.

  • The foreign judgment serves as evidence but is not conclusive, and the Indian court will adjudicate the matter afresh.

4. PRESUMPTION AS TO FOREIGN JUDGMENTS

Section 14 of the CPC establishes a presumption in favor of the competency of the foreign court’s jurisdiction, stating that the Indian courts shall presume, upon the production of any document purporting to be a certified copy of a foreign judgment, that such judgment was pronounced by a court of competent jurisdiction, unless the contrary appears on the record. This presumption is rebuttable, and the burden of proof lies on the party challenging the jurisdiction.

5. CASE LAWS ILLUSTRATING ENFORCEMENT OF FOREIGN JUDGMENTS

• Marine Geotechnics LLC v. Coastal Marine Construction & Engineering Ltd.: The Bombay High Court held that for judgments from non-reciprocating territories, the decree holder must file a suit upon the foreign judgment or the original cause of action in a competent Indian court.

• Ruchi Majoo v. Sanjeev Majoo: The Supreme Court emphasized that in matters of child custody, the welfare of the child is paramount, and Indian courts must independently evaluate foreign judgments, considering them as a factor but not conclusive.

6. DOCTRINES AND LEGAL PRINCIPLES

• Doctrine of Obligation: This principle posits that a foreign judgment imposes an obligation on the defendant, which the Indian courts recognize and enforce, provided it meets the criteria under Section 13 of the CPC.

• Res Judicata: Foreign judgments can operate as res judicata, preventing the same parties from litigating the same issue, unless the judgment falls under the exceptions in Section 13.

7. PROCEDURE FOR ENFORCEMENT

• For Reciprocating Territories:

  1. Obtain a certified copy of the foreign decree.

  2. Obtain a certificate from the foreign court stating the extent of satisfaction of the decree.

  3. File the decree and certificate in the appropriate Indian District Court under Section 44A of the CPC.

  4. The court will treat the decree as if it were passed by an Indian court and proceed with execution, subject to exceptions under Section 13.

• For Non-Reciprocating Territories:

  1. File a fresh suit in the appropriate Indian court based on the foreign judgment or the original cause of action.

  2. Prove the foreign judgment as evidence, but note that it is not conclusive and will be subject to independent adjudication.