IN THE HIGH COURT OF BOMBAY
Rajadhyaksha G.S. and Shah J.C. , JJ.
Appellants: Chunnilal Kasturchand
Vs.
Respondent: Dundappa Damappa
First Appeal No. 289 of 1948
Decided On: 10.02.1950
Counsels:
For Appellant/Petitioner/Plaintiff: G.M. Joshi, Adv.
For Respondents/Defendant: K.G. Datar, Adv.
The decree of a foreign court cannot be executed in the courts of a state against a person who was a non-resident foreigner with reference to the court which passed the decree and had not submitted himself to the jurisdiction of that court.
Fact of the Case:
The plaintiff obtained a decree against the defendant in the Belgaum Court, British India. The defendant was a resident of Jamkhandi State, which was an independent state at that time. The plaintiff sought to execute the decree in the Jamkhandi Court, but the court dismissed the darkhast on the ground that the Belgaum Court was a foreign court and the decree could not be executed against the defendant.
Finding of the Court:
The court held that the Belgaum Court was a foreign court with reference to the Jamkhandi Court at the time the darkhast was filed. However, the court also held that the merger of the Jamkhandi State with the Indian Union had the effect of extinguishing the sovereignty of the Jamkhandi State and merging its territory into the Dominion of India. As a result, the courts functioning in the Jamkhandi territory ceased to be foreign courts and became courts of the Indian Union. Therefore, the Belgaum Court could no longer be considered a foreign court with reference to the Jamkhandi Court, and the decree could be executed against the defendant.
Issues: 1. Whether the Belgaum Court was a foreign court with reference to the Jamkhandi Court at the time the darkhast was filed? 2. Whether the merger of the Jamkhandi State with the Indian Union had the effect of extinguishing the sovereignty of the Jamkhandi State and merging its territory into the Dominion of India? 3. Whether the courts functioning in the Jamkhandi territory ceased to be foreign courts and became courts of the Indian Union as a result of the merger?
Ratio Decidendi: 1. The competency of a court to try a case and pass a decree against a foreigner is to be judged by reference to principles of private international law and not by reference to the municipal code of the state governing the court which passed the decree. 2. The merger of the Jamkhandi State with the Indian Union had the effect of extinguishing the sovereignty of the Jamkhandi State and merging its territory into the Dominion of India. 3. As a result of the merger, the courts functioning in the Jamkhandi territory ceased to be foreign courts and became courts of the Indian Union.
Final Decision: The court allowed the appeal, set aside the order of the lower court, and remanded the proceedings back to the Court of Civil Judge, Senior Division, Belgaum, with a direction that the darkhast should be allowed to proceed and should be disposed of in accordance with law.
Rajadhyaksha, J.
1. This is an appeal against an order passed by the Additional District Judge and First Class Subordinate Judge, Jamkhandi, dismissing the decree-holders darkhast with costs.
2. It appears that one Chunilal Kasturchand Marwadi and another obtained a decree against Dundappa Damappa Navalgi and others in Suit No. 249/1927 in the Court of the Civil Judge, Senior Division, Belgaum. Dundappa was a partner in a partnership firm going by the name of Bashetappa Muttur and Ohanbassappa Lakshethi Co. which had business dealings with the plaintiffs. The plaintiffs brought the suit to recover arrears due to them and impleaded, all the partners of the firm, including Dundappa who was defendant 5. Defendants 1 to 4 resided within the local limits of the special jurisdiction of the Belgaum Court. The other defendants, including defendant 5, did not reside within that jurisdiction, and an application was made under Section 20 (b), Civil P. C., to obtain leave of the Court to proceed against them. The cause of action also arose within the jurisdiction of the Belgaum Court, Defendant 5 remained absent, and the suit proceeded ex parte against him. Ultimately, a decree was passed on 11-3-1938, in favour of the plaintiffs for a sum of Rs. 12,865 with future interest at six per cent. per annum on Rs. 11,500 and costs against defendants 2 to 5 and against the estate of Murigeppa Muttur in the hands of defendant 7. Dundappa died during the pendency of the suit, and his heir Irappa Damappa Navalgi was brought on record in his place.
3. In execution of the decree, Darkhast No. 418 of 1940 was filed in the Belgaum Court and was transferred for execution to the Court of the Subordinate Judge at Jamkhandi as defendant 5 resided and had property within the jurisdiction of Jamkhandi Court Jamkhandi was then an independent State in the Deccan with full civil and criminal jurisdiction. Under Section 44, Civil P. C., as then in force in that State, the Rajesaheb of Jamkhandi had passed an order on 15-8-1936 that the decrees of a Civil Court in British India may be executed in the State Courts as if they were decrees passed by the Civil Courts in the Jamkhandi State. In virtue of this order, execution was taken out against Irappa Damappa. The judgment-debtor appeared in answer to this darkhast and filed a written statement, Ex. 11, in which he raised a preliminary contention that as he was a permanent resident of Mudhol and Jamkhandi State and as the decree had been passed ex parte against him by the Belgaum Court, it could not be executed against him by the Jamkhandi Court.
4. The trial Court held that
"as the judgment-debtor was neither a permanent resident within the territorial limits of the Belgaum Court and had not submitted to the jurisdiction of that Court, the question whether the decree of the Belgaum Court was a decree of a Court of competent jurisdiction had to be determined by principles of international law."
Accordingly it held that
"the ex parte decree could not be executed by the Jamkhandi Court on the grounds mentioned in Section 13 (a), Civil P.C.."
The learned Judge, therefore, dismissed the darkhast on 10-3-1948. Against that order the decree-holders have come in appeal to this Court as the High Courts jurisdiction with respect to Jamkhandi State "now merged in this Province" vests in this Court.
5. It is not seriously disputed that the decree passed by the Belgaum Court is a perfectly good decree and can be executed against any property of the judgment-debtors anywhere in what was formerly known as British India. Defendant 6 was a non-resident foreigner so far as the Belgaum Court was concerned. But even so, Belgaum Court had jurisdiction, as the cause of action arose within its territorial limits. The competency of the Court to try this suit had to be determined according to the Municipal law. (See Section 20, Civil P. C.). It was held in Rambhat v. Shankar Baswant, 25 Bom. 528 : (3 Bom L. R. 82) that :
"Under the Civil
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