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Whether the order passed by the Foreign Court amounts to a “decree” and the same is executable

In M/s Alcon Electronics Pvt. Ltd. Vs. Celem S.A. of FOS 34320 Roujan, the issue before the Hon'ble Supreme Court OF India were the following :-

(1) Whether the order passed by the Foreign Court falls within the Exceptions to Section 13 of the CPC?
(2) Whether the order passed by the Foreign Court amounts to a “decree” and the same is executable?
(3) If answer to issue No. 2 is in affirmative, whether the decree for costs would fall within the ambit of Explanation 2 of Section 44A (3) of CPC and makes it inexecutable?
(4) Whether interest on costs would fall within the ambit of Explanation 2 of Section 44A of CPC?
(5) Whether the interest on costs can be executed in India in view of deletion of Section 35(3) of CPC?

In reply the Hon'ble Court held that -

1) The principles of comity of nation demand us 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 of the CPC...... The order in the present case passed by the English Court does not fall under any of the exceptions to Section 13 of the CPC and it is a conclusive one.

2) “decree” includes judgment and “judgment” includes “order”. On conjoint reading of ‘decree’, ‘judgment’ and ‘order’ from any angle, the order passed by the English Court falls within the definition of ‘Order’ and therefore, it is a judgment and thus becomes a “decree” as per Explanation to Section 44A(3) of CPC.

3 & 4) The Court that has ordered the costs is the High Court of Justice in England which is not governed by the provisions of the CPC and that the respondent merely approached the Indian Courts for the satisfaction of a foreign decree. No claim has been advanced by the appellant that the claim filed by the respondents is false or vexatious, therefore, the bar in Section 35A is not applicable.

5)  In India, although the interest on costs are not available due to exclusion of Section 35(3), the same does not mean that Indian Courts are powerless to execute the decree for interest on costs. Indian Courts are very much entitled to address the issue for execution of the interest amount. The Execution Petition filed by the Respondents for execution of the order dated 19th October, 2006 passed by the English Court is maintainable under the relevant provisions.

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