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Enforcement of Foreign Judgments

India is party to bilateral treaties with the reciprocating countries notified under the Code of Civil Procedure 1908 (the Code) for the purpose of recognition and enforcement of foreign judgments – namely, the United Kingdom, Aden, Fiji, Singapore, the Federation of Malaya, Trinidad and Tobago, New Zealand, the Cook Islands (including Niue) and the Trust Territories of Western Samoa, Hong Kong, Papua New Guinea and Bangladesh.

India follows the basic and customary principles of international law for entering into these treaties, including the principles of comity and res judicata

Law regarding the enforcement of foreign judgments.

There are three primary sources of law in relation to enforcement of foreign judgments in India:

legislation enacted by Parliament (ie, the Code): section 44A of the Code illustrates a legal fiction whereby a judgment rendered by a superior court of a reciprocating territory (as notified by the central government in the Official Gazette) is enforced in India as if it were a decree passed by the Indian district courts. However, a judgment emanating from a non-reciprocating territory cannot be directly enforced in the same manner and a new suit must be filed for its enforcement in which such a judgment holds only evidentiary value. Furthermore, it may be noted that both the aforementioned categories of judgments are required to comply with the conditions elucidated in section 13 of the Code, which provides for a foreign judgment to be conclusive in nature. However, section 14 of the Code raises a presumption in favour of the competency of juris­diction of the foreign court rendering the concerning judgment;

bilateral treaties with the reciprocating countries with regard to recognition and enforcement of foreign judgments to which India is a party; and

judicial precedents: the landmark case of Moloji Nar Singh Rao v Shankar Saran reads that a foreign judgment not emanating from a superior court of a reciprocating territory cannot be executed in India without the filing of a new suit in which the said judgment has only evidentiary value.

Limitation period for enforcement of a foreign judgment.

As with the provisions of the Code, foreign judgments from reciprocating territories are executable in India as decrees passed by the Indian district courts. The Limitation Act, 1963 prescribes the time limit for execution of a decree and for filing of a suit in the case of a foreign judgment.

In accordance with the provisions of the statute of limitations, the following time period is prescribed for the execution of decrees: three years in the case of a decree granting a mandatory injunction, commencing from the date of the decree or where a date is fixed for performance; or
12 years for execution of any other decree, commencing from the date when the decree becomes enforceable or where the decree directs any payment of money or the delivery of any property to be made at a certain date or in a recurring period, when default in making the payment or delivery in respect of which execution is sought takes place (provided that an application for the enforcement or execution of a decree granting a perpetual injunction shall not be subject to any period of limitation).

ANTI SUIT INJUCTION AGAINST FOREIGN PROCEEDINGS IN INDIA.

To put it simply, an order of anti-suit injunction is an order passed by a court to stop one of the parties to a litigation from pursuing its remedies in a foreign court. Illustratively, two entities, one based in USA and the other in India, have disputes. One entity pursues its remedies in a forum in USA, which is not natural or convenient and where the opposite party is not amenable to its jurisdiction. The other entity can essentially approach the local courts to state that all disputes should be adjudicated by one court alone, and can thus seek an injunction to restrain the opposite side from pursuing remedies in a foreign jurisdiction.

Principle to grant Anti suit Injunction in India, The Hon;ble Supreme Court held in the matter of Modi Entertainment Network & Anr vs W.S.G.Cricket Pte. Ltd :-

From the above discussion the following principles emerge :

  1. In exercising discretion to grant an anti-suit injunction the court must be satisfied of the following aspects : –
  • the defendant, against whom injunction is sought, is amenable to the personal jurisdiction of the court;
  • if the injunction is declined the ends of justice will be defeated and injustice will be perpetuated; and
  • the principle of comity – respect for the court in which the commencement or continuance of action/proceeding is sought to be restrained – must be borne in mind;
    1. in a case where more forums than one are available, the Court in exercise of its discretion to grant anti-suit injunction will examine as to which is the appropriate forum (forum conveniens) having regard to the convenience of the parties and may grant anti-suit injunction in regard to proceedings which are oppressive or vexatious or in a forum non-conveniens;
    2. Where jurisdiction of a court is invoked on the basis of jurisdiction clause in a contract, the recitals therein in regard to exclusive or non-exclusive jurisdiction of the court of choice of the parties are not determinative but are relevant factors and when a question arises as to the nature of jurisdiction agreed to between the parties the court has to decide the same on a true interpretation of the contract on the facts and in the circumstances of each case;
    3. a court of natural jurisdiction will not normally grant anti-suit injunction against a defendant before it where parties have agreed to submit to the exclusive jurisdiction of a court including a foreign court, a forum of their choice in regard to the commencement or continuance of proceedings in the court of choice, save in an exceptional case for good and sufficient reasons, with a view to prevent injustice in circumstances such as which permit a contracting party to be relieved of the burden of the contract; or since the date of the contract the circumstances or subsequent events have made it impossible for the party seeking injunction to prosecute the case in the court of choice because the essence of the jurisdiction of the court does not exist or because of a vis major or force majeure and the like;
    4. where parties have agreed, under a non- exclusive jurisdiction clause, to approach a neutral foreign forum and be governed by the law applicable to it for the resolution of their disputes arising under the contract, ordinarily no anti- suit injunction will be granted in regard to proceedings in such a forum conveniens and favoured forum as it shall be presumed that the parties have thought over their convenience and all other relevant factors before submitting to non-exclusive jurisdiction of the court of their choice which cannot be treated just an alternative forum;
    5. a party to the contract containing jurisdiction clause cannot normally be prevented from approaching the court of choice of the parties as it would amount to aiding breach of the contract; yet when one of the parties to the jurisdiction clause approaches the court of choice in which exclusive or non- exclusive jurisdiction is created, the proceedings in that court cannot per se be treated as vexatious or oppressive nor can the court be said to be forum non-conveniens; and
    6. the burden of establishing that the forum of choice is a forum non-conveniens or the proceedings therein are oppressive or vexatious would be on the party so contending to aver and prove the same.
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