Answer ... The Indian courts recognise the judgments of foreign courts. The treatment of such judgments will differ depending on the nature of the judgment and the jurisdiction in which it was issued.
Reciprocating territories: Only in certain cases can a foreign decree be executed in India directly as if it had been issued by an Indian court. Section 44A of the Code of Civil Procedure, 1908 provides, among other things, that where a foreign judgment has been rendered by a superior court in any country or territory outside India which the Indian government has declared to be a reciprocating territory, it may be enforced in India through execution proceedings as if it had been rendered by the relevant Indian court. The United Kingdom and Northern Ireland have been declared as reciprocating territories for the purpose of Section 44A. There is no such arrangement with the United States.
The Indian courts may refuse execution if the decree falls within any of the following exceptions specified in Section 13 of the Code of Procedure , which provides, among other things, that a foreign judgment will be conclusive of any matter directly adjudicated upon, except where:
- it was not issued by a court of competent jurisdiction;
- it was not given on the merits of the case;
- it appears on the face of the proceedings to be founded on an incorrect view of international law or a refusal to recognise Indian law in cases where such law is applicable;
- the proceedings in which the judgment was issued were opposed to natural justice;
- it was obtained by fraud; or
- it sustains a claim founded on a breach of any law in force in India.
However, Section 44A refers only to decrees or judgments under which a sum of money is payable. Essentially, therefore, only money decrees fall within the purview of Section 44A; no other decrees are enforceable in India.
Enforcement of judgments from non-reciprocating territories: In the absence of a reciprocal arrangement or treaty, a suit must be filed for enforcement of any such judgment or any such order obtained.
In the enforcement suit, the Indian court cannot examine the merits of the original claim or question its correctness or propriety. Through precedent, the courts have held that the word ‘judgment’ in the expression ‘foreign judgment’ has been assigned the same meaning as is given to it in English law, and refers to a decree or order of a foreign court. A foreign judgment must be final and conclusive in the court in which it was issued to be considered a valid cause of action.
In order to establish that a final and conclusive judgment has been issued, it must be shown that, in the court in which it was issued, it has conclusively, finally and definitively established the existence of the right of which it is sought to be made conclusive evidence in India, so as to constitute res judicata (ie, a matter conclusively decided between parties).