Enforcement of Foreign Judgements under CPC

12 Jul 2025 --
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📜 ENFORCEMENT OF FOREIGN JUDGMENTS UNDER CPC

1. What are Foreign Judgments?

A foreign judgment is a judgment, decree, or order passed by a court outside the territory of India.

Such judgments are of two types:

Foreign Civil Judgment: Passed by civil courts in foreign countries.

Foreign Criminal Judgment: Passed by criminal courts in foreign countries.

2. Legal Framework for Enforcement

The enforcement of foreign judgments in India is governed primarily by Section 13 of the Code of Civil Procedure (CPC), 1908.

Additionally, enforcement of judgments from reciprocating territories is governed under Order 21, Rule 32, CPC.

Section 44A of the CPC provides the procedure for the enforcement of foreign judgments from reciprocating territories.

3. Section 13, CPC – Enforcement of Foreign Judgments

Text of Section 13:

Section 13 states that foreign judgments are not conclusive proof except in the case of judgments from courts of reciprocating territories.

The Indian courts may recognize and enforce foreign judgments as evidence of a debt or cause of action if certain conditions are met.

Key Points:

Foreign judgments are not automatically enforceable like Indian judgments.

Enforcement depends on whether the foreign court had jurisdiction, the judgment was final and conclusive, and it was not obtained by fraud or breach of natural justice.

The foreign judgment must be from a court of competent jurisdiction.

The foreign court’s judgment is enforceable only as a debt or cause of action — it does not operate as a binding decree.

4. Reciprocating Territories

Some countries have reciprocal arrangements with India for enforcement of judgments.

The Government of India notifies these countries as reciprocating territories.

Judgments from these countries are enforceable under Order 21, Rule 32, following certain procedures.

Examples: UK, Singapore, Malaysia, etc.

5. Enforcement Procedure under Order 21, Rule 32

The foreign judgment creditor files a civil suit for execution of the foreign decree.

The court will grant execution if satisfied about the validity and authenticity of the judgment.

The defendant can challenge enforcement on grounds such as:

Lack of jurisdiction

Fraudulent obtaining of judgment

Judgment passed against natural justice

Judgment is not final

6. Conditions for Enforcement of Foreign Judgment

To enforce a foreign judgment, the following must be satisfied:

Condition	Explanation
Competent Jurisdiction	The foreign court must have had jurisdiction over the parties and subject matter.
Finality	The judgment must be final and conclusive (not interlocutory).
Not Obtained by Fraud	Judgment must be free from fraud or collusion.
No Breach of Natural Justice	Defendant must have been given a fair opportunity to defend.
Reciprocity	For certain judgments, the foreign country must have a reciprocal enforcement agreement.

7. Distinction Between Foreign Judgment and Foreign Decree

Foreign Decree: Is a judgment that conclusively decides the rights of the parties.

Foreign Judgment: A broader term; not always enforceable as a decree.

Enforcement of foreign judgments depends on whether it amounts to a decree or not.

8. Important Case Law

🔹 Hilton vs. Guyot (1895)

Though a US Supreme Court case, it is influential in Indian law on recognition of foreign judgments.

Established the principle of comity of nations—foreign judgments should be respected if rendered by competent courts and with due process.

🔹 Lallubhai Samaldas vs. Union of India (AIR 1952 SC 207)

The Supreme Court held that Section 13 CPC does not confer automatic enforceability on foreign judgments.

Indian courts will not enforce a foreign judgment unless it meets the conditions mentioned in Section 13.

🔹 Nathulal Trikamdas vs. Muralidhar (AIR 1964 SC 956)

Indian courts will not enforce foreign judgments that contravene Indian public policy or are obtained without fair hearing.

🔹 Gherulal Parakh vs. Mahadeodas Maiya (AIR 1959 SC 781)

Emphasized that foreign judgments are only prima facie evidence and can be rebutted.

9. Exceptions – When Foreign Judgments Are Not Enforceable

Judgment obtained by fraud or collusion.

Judgment on a matter outside the jurisdiction of the foreign court.

Judgment inconsistent with Indian law or public policy.

Judgment passed in a suit founded on a breach of Indian laws.

If the foreign judgment is interlocutory and not final.

10. Summary Table

Aspect	Details
Governing Law	Section 13 CPC, Order 21 Rule 32 CPC
Requirement	Foreign judgment must be final, conclusive, and from competent court
Enforceability	Not automatically enforceable; needs suit for execution
Reciprocating Territories	Enforced under specific rules with Govt. notification
Grounds of Rejection	Fraud, lack of jurisdiction, breach of natural justice, public policy
Case Laws	Lallubhai Samaldas, Nathulal Trikamdas, Gherulal Parakh