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2026 Supreme(Bom) 446

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
SANDEEP V. MARNE, J.
Elis Jane Quinlan and Others – Appellants
Versus
Naveen Kumar Seth, Director of Candica Industries – Respondent
Writ Petition No. 14283 of 2023
Decided On : 10-02-2026

Advocates Appeared:
For the Appellants : Shrey Fatterpekar, Aakash Shinaa, Juris Corp
For the Respondents: Rohan Kelkar, Smruti Kanade, Negandhi Shah, Himayatullah

Execution under CPC Section 44A for reciprocating territory decrees involves summary Section 13 inquiry; framing issues and evidence allowed only in exceptional circumstances like doubts on service, fraud, natural justice.

Headnote:(A) Code of Civil Procedure, 1908 - Sections 44A, 13, 47 - Execution of decrees passed by courts in reciprocating territory - Such decrees executable directly as domestic decrees - Provisions of Section 47 apply - Executing court to refuse execution if satisfied decree falls within exceptions in clauses (a) to (f) of Section 13 - Inquiry into such exceptions is summary, based on pleadings, proceedings and record, not full-fledged trial by framing issues and leading evidence routinely - Framing issues and permitting evidence permissible only in exceptional circumstances where complex facts like service, natural justice violation or fraud cannot be resolved expeditiously otherwise. (Paras 16, 23-30, 37)

(B) Section 14 - Presumption that foreign judgment pronounced by court of competent jurisdiction unless contrary appears on record or displaced by proof of want of jurisdiction. (Para 21)

(C) Article 227 of Constitution - No interference with executing court's order framing issues in exceptional case where prima facie doubts exist on service at known address, suppression raising fraud, and ex parte nature questioning merits and natural justice. (Paras 38-42)

Facts of the case:
Decree holders obtained foreign decree holding judgment debtor liable for amount with interest; decree certified unsatisfied - Initial execution dismissed as territory not reciprocating then - Suit on decree dismissed for office objections - Fresh execution filed post-notification of reciprocating territory - Judgment debtor objected under Section 13 claiming no merits adjudication, natural justice breach due to improper service despite known address, fraud by suppression - Executing court framed issues on these and limitation, permitted evidence.

Findings of Court:
Executing court noted exceptional circumstances from record showing known address not used for service, suppression allegations, ex parte default judgment relying on expert report without full evidence - Directed expeditious adjudication within 90 days; High Court upheld but mandated 3 months timeline.

Issues: Whether in execution under Section 44A, executing court can frame issues and direct parties to lead evidence while inquiring into Section 13 exceptions; existence of exceptional circumstances justifying same.

Ratio Decidendi: Legislative intent of Section 44A for swift execution mandates summary Section 13 inquiry without routine full trial; however, executing court may frame issues and allow evidence prudently in rare exceptional cases of complex factual disputes going to root like service suppression, fraud and natural justice, as burden on judgment debtor to prove exceptions but record raises prima facie doubts requiring deeper probe.

Result: Writ petition dismissed. No interference with impugned order; executing court directed to render findings expeditiously within 3 months. Rule discharged. No costs.

Table of Content
1. petition challenges framing issues in foreign decree execution. (Para 1 , 2 , 3)
2. mou breach led to uae default decree and satisfaction certificate. (Para 4 , 5 , 6)
3. prior executions failed; current order frames s13 issues. (Para 7 , 8)
4. no evidence required for s13 objections in s44a execution. (Para 9 , 10 , 11 , 12)
5. exceptional cases justify issues and evidence under s44a. (Para 13 , 14)
6. issue: framing issues permissible in s44a s13 inquiry? (Para 15 , 16 , 17 , 18 , 19 , 20)
7. s44a enables direct execution; s13 exceptions apply summarily. (Para 21 , 22 , 23 , 24 , 25)
8. summary inquiry under s13, not full trial, in s44a. (Para 26 , 27 , 28 , 29 , 30)
9. framing issues prudent only in exceptional execution cases. (Para 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38)
10. service doubts, fraud create exceptional circumstances. (Para 39 , 40 , 41)
11. no interference; expedite execution proceedings. (Para 42 , 43)

JUDGMENT :

SANDEEP V. MARNE, J.

1. Rule. Rule made returnable forthwith. Since the pleadings in the Petition are complete, the parties have requested for final hearing of the Petition. Accordingly, with the consent of the learned counsel appearing for the parties, the Petition is taken up for hearing and final disposal.

2. By this Petition, Petitioners have challenged Order dated 3rd November 2022 passed by the District Judge, Pune allowing application at Exhibit 20 filed by the Respondent-Judgment Debtor and framing issues with further liberty to the parties to lead evidence thereon.

3. Petitioner is a foreign Decree Holder and has filed execution proceedings for execution of the decree passed by Fujairah Civil Court, United Arab Emirates (UAE). According to the Petitioner, Fujairah Civil Court, UAE is notified by Government of India as reciprocating territory within the meaning of Section 44A of the Code of Civil Procedure, 1908 (Code) and that therefore the decree can be executed as if it is a domestic decree under Section 47 of the Code. Petitioners are accordingly aggrieved by the Court’s directions for framing of issues and for liberty to the parties to lead evidence.

4. Facts of the case as pleaded in the Petition are that Candica Industries FZC (Company) is an incorporated entity in Fujairah Free Zone, UAE, and engaged in the business of manufacturing and trading in the confectionery under a trade license issued from the Free Trade Zone in the Emirate of Fujairah, UAE. The Company had taken readymade infrastructure and building in the year 2003 along with open land from Fujairah Free Zone Authority on lease for a period of five years in order to enable it to utilise the funds on the equipment and machinery rather than constructing the facilities. According to the Petitioner, the Company incurred substantial pre-operative expenses on account of delay and incurred operational losses. In view thereof, the directors of the Company decided to sell their stake in the Company at intrinsic value to the Respondent and requested him to run the business. The reserve price of AED 6.5 million was fixed for taking over of assets of the company by the Respondent. Petitioner No.1 was looking for opportunity to invest in the food processing business of the Company and offered to buy out Company’s business along with certain specified assets and liabilities of the company at the price of AED 41,72,362/- which was accepted by the Respondent. Pursuant to the agreement between the parties, a Memorandum of Understanding (MOU) dated 19 July 2007 was executed between the Petitioners, Company and the Respondent. According to the Petitioners, it has complied with the obligations under the terms and conditions of the MOU and that the Respondent received sale consideration of AED 4,172,362/-. Petitioners claim that additional amount of AED 100,000/- was paid to the Company towards loan in respect of the leased warehouse, land and Company’s assets. According to the Petitioners, Respondent failed to fulfill obligations under th

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