LexM/S ALCON ELECTRONICS PVT. LTD. versus CELEM S.A. OF FOS 34320 ROUJAN, FRANCE & ANR.
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[2016) 8 S.C.R. 577 M/S ALCON ELECTRONICS PVT. LTD. v. CELEM S.A. OF FOS 34320 ROUJAN, FRANCE & ANR. (CivilAppea!No. 10106of2016) DECEMBER 09, 2016 (A. K. SIKRI AND N. V. RAMANA, JJ.] A B Code of Civil Procedure, 1908- ss. 13, 44A(3) - When foreign iudgment not conclusive - Interlocutory order of an English court - Dismissal of the application challenging its jurisdiction, alongwith . C a direction for payment of costs - Execution of, by Indian Court - Held: To be conclusive an order or decree must liave been obtained after following the due judicial process by giving. reasonable notice and opportunity to all the proper and necessary parties to put forth their case - When once these requirements are fulfilled, the executing Court cannot enquire into the validity, legality or otherwise of the· D ;udgment - On facts, the order passed by the English Court does not fall under any of the exceptions to s. 13 and it is a conclusive one - Said order falls within the definition of 'Order' and therefore, it is a judgment and thus. becomes a .. decree" as per Explanation to s. 44A(3) and the same is executable - Further, the costs imposed on the basis of the indemnity is not a penalty or tax - Thus, Explanation II to Section 44A does not re.fer to the costs as contemplated uls. 35"_ Although the interest on costs are not available due to exclusion of s. 35(3), it does not mean that Indian Courts are powerless to execute the decree for interest on costs ~ Thus, the execution petition filed by the respondents for execution of the order passed by the English Court is maintainable. Dismissing the appeal, the Court HELD: 1.1 A plain reading of Section 13 CPC would show that to be conclusive an order or decree must.have been obtained after following the due judicial process by giving reasonable notice and opportunity to all the proper and necessary parties to put forth their case. When once these requirements are fulfilled, the executing Court cannot enquire into the validity, legality or otherwise of the judgment. [Para· 13) (585-B-C] 577 E F G H 578 A B c D E F SUPREME COURT REPORTS [2016) 8 S.C.R. 1.2 A glance on the enforcement of the foreign judgment, the position at common law is very clear that a foreign judgment which has become final and conclusive between the parties is not impeachable either on facts or law except on limited grounds enunciated under Section 13, CPC. In construing Section 13, CPC the plain meaning of the words and expressions used therein is to be looked at and not any other factors. Further, under Section 14, CPC there is a presumption that the Foreign Court which passed the order is a Court of competent jurisdiction which of course is a rebuttable presumption. [Para 14) [585-C-E] 1.3 The order passed by the English Court is an order on merits. The appellant who has submitted itself to the jurisdiction of the Court and on its own requested the Court to assess the costs summarily. While passing a reasoned order by dismissing the application filed by the appellant, English Court granted the costs against the appellant. The appellant did not prefer any appeal and inrleed sought time to pay the costs. The appellant, therefore, cannot be permitted to object the execution. It is a pure abuse of process of law and the-Courts should be very cautious in entertaining such petitions. [Para 16) [586-A-B] International Woollen Mills v. Standard Wool (UK; Ltd. 2001 (3) SCR 166: 2001 (5) SCC 265 - referred to. 1.4 The demand of the principles of comity of nation demands to respect the order of English Court. Even in regard to an interlocutory order, Indian Courts have to give due weight to such order unless it falls under any of the exceptions under Section 13 CPC. Thus, the order passed by the English Court does not fall under any of the exceptions to Section 13 CPC and it is a conclusive one. [Para 18) [586-F-G) 2.1 There is no dispute that England is a reciprocating territory for the purpose of Section 44A CPC. Section 44A CPC 0 indicates an independent right conferred on a foreign decree holder for enforcement of a Decree/Order in India. Section 44A is meant to give effect to the policy contained in the Foreign Judgments (Reciprocal Enforcement) Act, 1933. It is a part of the arrangement under which on one part decrees of Indian Courts are made executable in United Kingdom and on the other H part, decrees of Courts in the United K
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