High Court of Judicature at Bombay
K.K. TATED, J.
M/s. Alcon Electronics Pvt. Ltd.
Versus
Celem S.A. & Another
Civil Revision Application No.680 of 2011
Decided on : 08-04-2013
An interim order of costs passed by a Foreign Court, can be executed in India by District Court. - In the present case Section 44-A read with relevant explanation shows that before it is invoked by any decree holder, he must satisfy the following conditions :
(i) A decree-holder who seeks execution must be armed with a money decree passed by any of the superior Court of any reciprocating territory, being any foreign country or territory which the Central Government may, by notification in the Official Gazette, has declared to be a reciprocating territory for the purpose of the section.
(ii) Such an execution petition can be entertained by executing Court in India being the District Court that will be clothed with the legal fiction as if the said foreign decree was passed by itself and whose aid and assistance are required for executing such a decree.
(iii) Such a decree can be put for an execution before a District Court in India being the principal Civil Court of original jurisdiction and which will include the local limits of original civil jurisdiction of a High Court.
(iv) Once such execution petition is filed before the appropriate District Court the entire machinery of Section 47 for execution of India decree would be automatically get attracted.
(v) In such execution proceedings, the judgment-debtor of a foreign Court decree/order will be entitled to satisfy the executing Court in India that the foreign decree/order cannot be executed against him as it is hit by any of the exceptions specified in clauses (a) to (1) of Section 13 of Code of Civil Procedure.
Perusal of the explanation in Section 44-A of Code of Civil Procedure shows that legislation intentionally has included even judgment within the meaning of the term decree for purpose of Section 44-A of Code of Civil Procedure. The intention was to expand or enlarge the scope of term decree for the purpose of this section.
Therefore an order which may not amount to a decree but may amount to judgment would be a judgment for the purpose of Section 44-A of Code of Civil Procedure. Thus, awarding costs would amount to decree within the meaning of Section 44-A and can be recovered by executing order under Section 44-A of Code of Civil Procedure.
1. Heard learned counsel for the parties.
2. Rule.
3. Rule made returnable forthwith.
4. By consent, the matter is taken on board for final hearing at the stage of admission itself.
5. By this Civil Revision Application, the Defendant – Judgment Debtor challenges the order dated 15th April, 2011 passed by the learned District Judge-2, Nashik below Exhibit 1 in Special (Civil) Darkhast no.1 of 2007, rejecting the Petitioner’s Application for declaration that the recovery proceeding filed by the Respondents – original Plaintiffs be disposed off/dismissed for lack of jurisdiction or even otherwise on facts and holding that the execution proceeding filed by Respondents being maintainable and the judgment and order dated 19th October, 2006 passed by High Court of Justice, Chancery Division, Patents Court is executable before District Court at Nashik.
6. A few facts of the matter are as under:
The Respondents – original Plaintiffs filed a Suit against the Petitioner – original Defendant in the High Court of Justice, Chancery Division, Patents Court in the England. In the said Suit, the Petitioner preferred Application dated 11th May, 2006 for declaration that the High Court of Justice, Chancery Division, Patents Court, U.K. have no jurisdiction to entertain the Claim no.HC 06C00720. The said Application was rejected by the Hon’ble High Court of Justice, Chancery Division, Patents Court, United Kingdom by an order dated 19th October, 2006 and imposed a costs in the sum of £12,429.75 equivalent to Rs.10,16,753.55 paise with interest at the rate of 8% per annum. Thereafter, the Respondents – original Plaintiffs filed Special (Civil) Darkhast no.1 of 2007 in the Court of District Judge 2, Nashik for execution of the order passed by the Foreign Court, for recovery of sum of Rs.10,16,753.55 towards decretal amount under Order dated 19th October, 2006 (costs) and Rs.67,786/- towards interest at the rate of 8% per annum on the principal amount from the date of the order date i.e. 19th October, 2006 to 14th August, 2007 and further interest till the recovery of the amount. In the said Execution Petition, the Petitioner preferred Exhibit 1 on 1st March, 2008 for declaration that the Execution Application filed by the Respondents is not maintainable as the same is in respect of the costs imposed by the foreign Court at the time of dismissing the Petitioner’s Interim Application, whereas, the main matter is still pending for hearing and final disposal on its own merits. The said Application is rejected by the District Judge-2, Nashik by impugned order dated 15th April, 2011 and hence, the present Civil Revision Application.
7. The learned counsel appearing on behalf of the Petitioner submits that the impugned order passed by the District Judge-2, Nashik dated 15th April, 2011 is against justice, equity and good conscience and the same is liable to be set aside. He submits that the District Court, Nashik failed to appreciate that the Execution Application filed by the Respondents for recovery of costs imposed by foreign Court on Interim Application, whereas, the main matter is pending for hearing and final disposal on its own merits, therefore, the Execution Petition is not maintainable for recovery of costs imposed by the foreign Court at the time of deciding Interim Application. He submits that the District Judge-2, Nashik ought to have seen that under Indian Law interim order for payment of costs are not executable unless it has been made into a form of a decree, which is passed at the time of final hearing of the suit and as such the execution of an order passed by the Court in England which was interim order awarding cost, could not have been held to be maintainable. He further states that the learned Executing Court failed to notice that only such part of an order or decree is executable in India which part is in consonance with the law on the subject in India as well. If there is any order passed by the foreign Court in respe
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