Foreign Judgments under the Code of Civil Procedure, 1908

A foreign judgment plays an important role in determining the conclusiveness of decisions passed by foreign courts and their enforcement in India. The Indian Civil Procedure Code (CPC), 1908, under Sections 2(5), 2(6), 13, 14 and 44A, along with principles of res judicata, lays down the rules regarding when and how such judgments are binding in India.

Meaning of Foreign Court and Foreign Judgment

• Section 2(5), CPC: “Foreign Court” means a court situated outside India and not established or continued by the authority of the Central Government.
• Section 2(6), CPC: “Foreign Judgment” means the judgment of a foreign court.

Thus, for a judgment to be treated as a foreign judgment in India, it must come from a court situated outside India and not recognized as an Indian court.

Res Judicata and Foreign Judgment

• Section 11 CPC (Res Judicata) does not directly apply to foreign judgments.
• However, the broad principle of res judicata applies under Section 13 CPC, provided that the conditions laid down therein are satisfied.

When is a Foreign Judgment Conclusive? (Section 13 CPC)

A foreign judgment shall be conclusive as to any matter directly adjudicated upon between the same parties under the same title, except in the following situations:
1. Lack of Jurisdiction – The foreign court had no jurisdiction.
2. Not on Merits – Judgment not passed after considering evidence and applying judicial mind.
3. Incorrect View of International Law / Ignoring Indian Law – When Indian law is applicable but ignored.
4. Violation of Natural Justice – No fair hearing, no summons served, or denial of opportunity to cross-examine.
5. Fraud – Judgment obtained by fraud or misrepresentation.
6. Breach of Indian Law – Judgment based on a claim violating Indian law.

 Effect: If none of the above exceptions apply, the Indian courts are bound to treat the foreign judgment as final and conclusive.

Key Requirements for Binding Effect

For a foreign judgment to operate conclusively in India:
• Parties must be the same (or their representatives).
• They must sue under the same title.
• The matter (issue) decided must be the same.

Example: If A sues B in the U.S. court and the matter is decided, then A cannot re-litigate the same issue in India, subject to Section 13 exceptions.

Presumption as to Jurisdiction and Genuineness

• Section 14 CPC: When a certified copy of a foreign judgment is produced, the Indian court shall presume the foreign court had jurisdiction, unless proved otherwise.
• Section 86 Evidence Act (old Sec. 88 BSA): The Indian court may presume certified copies of foreign judicial records to be genuine.

 Thus, once a certified copy is filed, the burden shifts to the opposite party to prove lack of jurisdiction or any exception under Section 13.

Jurisdiction of Foreign Courts – Section 13(a) CPC

For a foreign court to have jurisdiction:
1. The parties must be domiciled in that foreign country, or
2. They must consent to its jurisdiction (expressly or by acquiescence).

• If summons is received and the party contests on merits without objecting to jurisdiction → jurisdiction by acquiescence.
• If summons is ignored or objection is raised → foreign court has no jurisdiction.

Clause (b) & (d): Judgment on Merits & Natural Justice

• Judgment on Merits (Clause b): Only when both parties were heard, evidence was considered, and judicial mind was applied. An ex parte decree without evidence is not on merits.
• Violation of Natural Justice (Clause d): Where summons not served, no opportunity of hearing/cross-examination given.

Often, both clauses overlap.

Clause (e): Foreign Judgment Obtained by Fraud

Fraud vitiates all judicial proceedings. Examples:
• Jurisdictional Fraud: False claim of domicile.
• Fraud in Service of Summons: Fabricated proof of service.
• Fraudulent Evidence/Documents: False documents presented.

Such decrees are not conclusive under Section 13.

• Clause (c) & (f): Incorrect Law / Breach of Indian Law
• Clause (c): When Indian law is applicable but foreign court applies foreign law.
• Clause (f): When decree is based on a breach of Indian law, it is not conclusive.

Important Case Laws

• Narsimha Rao v. Venkata Lakshmi (1999, SC): U.S. divorce decree held invalid due to lack of jurisdiction, fraud, violation of natural justice, wrong law applied.

• Satya v. Teja Singh (1975, SC): U.S. divorce decree invalid – husband falsely claimed domicile.

• Gurdas Mann v. Mohinder Singh Brar (1993, P&H HC): Ex parte decree without evidence not conclusive.

• International Woollen Mills v. Standard Wool (2000, SC): Burden of proving exceptions lies on the party challenging the judgment.

Execution of Foreign Decrees

Foreign judgments can be executed in India in two ways:

1. Direct Execution (Sec. 44A CPC):
• Applicable only to money decrees from superior courts of reciprocating territories.
• Such decrees can be directly filed for execution in Indian courts.
2. Filing a Fresh Suit:
• For non-money decrees, or decrees from non-reciprocating territories.
• A certified copy of the foreign judgment is filed, and the Indian court passes its own decree.

Conclusion

The CPC strikes a balance between respecting foreign judicial decisions and protecting Indian legal sovereignty. While Section 13 CPC makes foreign judgments conclusive, it also provides safeguards against lack of jurisdiction, fraud, violation of natural justice, or breach of Indian law. Sections 14 and 44A CPC further regulate the presumption of validity and execution of such decrees.

Thus, foreign judgments are respected in India, but only when they meet the tests of fairness, jurisdiction, and conformity with Indian law.

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