Under the Indian laws, there are two ways of getting a foreign judgement or decree enforced in India either by filing an Execution Petition u/s 44A of the CPC subject to conditions given u/s 13 or by filing a suit upon the foreign judgement/decree.
In India, execution of decrees, regardless of whether foreign or homegrown, is represented by the provisions of the Code of Civil Procedure, 1908 (CPC). Under the Indian laws, there are two different ways of getting a foreign judgment authorized in India either by filing an Execution Petition u/s 44A of the CPC subject to conditions indicated in that are fulfilled or by filing a suit upon the foreign judgment/order. While upholding the unfamiliar judgment or declaration in India, you have to ensure that the said judgment or decree is a convincing one, has been passed on benefits of the case by a predominant court having competent jurisdiction.
A "decree" signifies formal adjudication of the issue where the Court definitively decides the rights of the parties with respect to all or any of the issues in debate in the suit and a "Judgment" signifies the statement given by the judge on the grounds of a decree.
Section 2(6) of the CPC characterizes "foreign judgment" as the judgment of an foreign Court. Foreign Court is characterized under section 2(5) of the CPC as a Court arrange outside India and not built up or proceeded by the authority of the Central Government.
A "foreign decree" is characterized in Explanation II to Section 44A of the CPC as, "Decree" concerning a predominant court implies any declaration or judgment of such court under which a whole of cash is payable, not being an aggregate payable in regard of duties or different charges of a like sort or in regard of a fine or other punishment, yet will for no situation incorporate an arbitral honor, regardless of whether such an honor is enforceable as a decree or judgment.
The parameters to test for the conclusiveness of any foreign judgment or decree are laid down in section 13 of the CPC which states that a foreign judgment shall be conclusive unless:
In case the foreign judgement or decree fails any of the above tests, it will not be considered conclusive and hence, will not be enforceable in India.
If a foreign judgement/decree is conclusive u/s 13 of the CPC, it can be enforced in India in one of two ways:
According to CPC, a 'responding an area' signifies any nation or domain outside India, which the Central Government may, by method of notice in the Official Gazette, announce to be a responding an area and 'Better Courts' in connection than such a region for this part.
In understanding to Section 44A of the CPC a declaration passed by any unrivaled Court of a responding an area is executable in India as though it had been passed by the District Court in India.
Consequently, orders from Superior Courts in 'reciprocating territories' can be enforced directly by filing an execution order under the steady gaze of the Indian Court of equipped locale, following the strategy recommended under the CPC.
United Kingdom, Singapore, Bangladesh, UAE, Malaysia, Trinidad & Tobago, New Zealand, the Cook Islands (including Niue) and the Trust Territories of Western Samoa, Hong Kong, Papua and New Guinea, Fiji, Aden.
While submitting the execution application, the party has to also file the original certified copy of the foreign decree along with a certificate from the superior court stating the extent, if any, to which the decree has been satisfied or adjusted.
Where the judgment or the announcement isn't from a region other than responding domains (non-responding regions), a new polite suit needs to filed dependent on that foreign declaration, or on the first basic reason for activity, or both in a domestic Indian court of capable locale (Marine Geotechnics LLC v/s Coastal Marine Construction and Engineering Ltd. 2014).
Therefore, in such cases, the concerned party cannot simply execute the foreign decree. They can only execute the resulting domestic decree. However, to obtain that decree, the party needs to prove that the said foreign decree satisfies the tests of section 13 of the CPC.
Such foreign Judgement or decree has only evidentiary and persuasive value in the eyes of Law. The time limit to file such a law suit is within 3 years from date of pronouncement of foreign judgement.
Generally, the amount awarded in a foreign decree is in a foreign currency. While executing the foreign decree in India, the said amount is converted into Indian currency but the question that raises concern is as to which date to use for calculating the conversion of the currency.
The above question was answered in the case Forasol vs. ONGC 1984 where it was held that the date of the decree should be used for the calculation currency conversion.
