Foreign Judgment – Meaning and Legal Framework
Definition
Section 2(6) of the Code of Civil Procedure, 1908 defines “Foreign Judgment” as “a
judgment of a foreign court.”
A foreign court under Section 2(5) means a court situated outside India and not established
or continued by the authority of the Central Government.
Thus, judgments passed by courts in England, the USA, France, or Germany are foreign
judgments in Indian law.
A foreign judgment represents the adjudication by a court outside India upon a matter
before it.
Introduction
Sections 13 and 14 of the CPC embody the principle of res judicata in the context of foreign
judgments.
They incorporate the rule of private international law that a judgment delivered by a
competent foreign court can be enforced by Indian courts and will operate as res judicata
between the parties—except in the situations mentioned under Section 13.
Section 13 lays down the conditions when a foreign judgment is not conclusive, while
Section 14 provides a presumption of competency in favour of the foreign court.
Nature and Scope
Section 13 is substantive law, not merely procedural.
It applies to both plaintiffs and defendants alike.
It gives effect to the international principle that once a competent foreign court
adjudicates upon a matter, a legal obligation arises to satisfy that claim.
Illustration:
If A sues B in a foreign court and the suit is dismissed, the judgment will operate as a bar to a
fresh suit by A in India on the same cause of action.
Binding Nature of a Foreign Judgment
Under Section 13, a foreign judgment is conclusive as to any matter directly adjudicated
upon between the same parties or parties claiming under them, except in the following six
cases:
(a) Judgment not by a competent court
A judgment passed by a court lacking jurisdiction is null and void.
The foreign court must be competent both under its own law and in an international sense,
having jurisdiction over the subject matter and the defendant.
Case: R. Viswanathan v. Rukn-ul-Mulk Syed Abdul — competence is determined at the time
of institution of the suit.
Example: Gurdyal Singh v. Rajah of Faridkote
The Faridkot court passed a decree against a person who was neither residing nor domiciled
there. It was held that the Faridkot court had no jurisdiction; hence, its decree was a nullity.
(b) Judgment not given on merits
A foreign judgment must be based on evidence and judicial consideration of the issues.
Dismissal for default or for non-production of documents is not a decision on merits.
Case: Keymer v. P. Visvanatham – dismissal for default was not on merits.
However, an ex parte decree may still be on merits if the court applied its mind and decided
based on evidence (Lalji Raja & Sons v. Firm Hansraj Nathuram).
(c) Judgment based on incorrect international or Indian law
If a foreign court applies an incorrect view of international law or refuses to recognize Indian
law where applicable, its judgment is not conclusive.
Case: R. Viswanathan v. Rukn-ul-Mulk Syed Abdul — the foreign judgment must respect the
applicable Indian law where required.
(d) Judgment opposed to natural justice
For a judgment to be valid, natural justice must be observed: impartial tribunal, fair hearing,
proper notice, and opportunity to present one’s case.
A judgment rendered without notice or by a biased judge is void.
Cases:
Viswanathan v. Abdul Wajid – bias renders judgment null.
Sankaran Govindan v. Lakshmi Bharathi – natural justice relates to procedural
fairness, not merits.
(e) Judgment obtained by fraud
Fraud vitiates even the most solemn judicial proceedings.
Lord Denning: “No judgment of a court… can be allowed to stand if it has been obtained by
fraud.”
Key Cases:
Satya v. Teja Singh – husband obtained divorce in U.S. court by falsely claiming
domicile; decree held void.
Narasimha Rao v. Venkata Lakshmi – American divorce decree unenforceable as the
court lacked jurisdiction.
S.P. Chengalvaraya Naidu v. Jagannath – any decree obtained by fraud is non est and
can be challenged even collaterally.
(f) Judgment founded on breach of Indian law
A foreign judgment contrary to Indian law or public policy cannot be enforced.
For instance, a foreign divorce decree cannot be recognized if Indian law does not permit
dissolution on such grounds.
Case: Satya v. Teja Singh – foreign judgment inconsistent with Indian matrimonial law was
invalid.
Presumption as to Foreign Judgment – Section 14
Section 14 provides that the Indian court shall presume that a certified copy of a foreign
judgment was pronounced by a court of competent jurisdiction—unless the contrary is
proved.
The burden of disproving jurisdiction lies on the party challenging it.
The presumption can be rebutted by showing want of jurisdiction.
Case: Narasimha Rao v. Venkata Lakshmi – mere photocopy of a decree was
insufficient; it must be certified by a competent representative of the Central
Government.
Thus, Section 14 facilitates recognition but allows challenge on legitimate jurisdictional
grounds.
Effect of a Foreign Judgment
A foreign judgment that satisfies Section 13:
Is conclusive between the same parties.
Operates as res judicata in India.
Creates a binding legal obligation to satisfy the decree, unless any of the six
exceptions apply.
Enforcement of Foreign Judgment in India
A conclusive foreign judgment can be enforced in India in two ways:
1. By Execution Proceedings (Section 44-A)
Section 44-A allows direct execution in India of decrees passed by superior courts of
reciprocating territories (like the U.K., Singapore, UAE, Malaysia, etc.).
Procedure:
A certified copy of the foreign decree must be filed in a District Court in India.
The decree is then executed as if passed by that District Court.
The judgment debtor may raise objections permissible under Section 13(a)–(f).
Condition: The decree must not violate any exception under Section 13.
2. By Filing a Suit on the Foreign Judgment
If the judgment is from a non-reciprocating territory (like the USA or China), it cannot be
executed directly.
The decree-holder must file a fresh civil suit in India based on the foreign judgment.
The Indian court will not re-examine the merits but will check compliance with
Section 13.
Such a suit must be filed within three years from the date of the foreign judgment.
The judgment serves as evidence of the claim, and if found conclusive, a new Indian
decree is passed for enforcement.