M/S ALCON ELECTRONICS PVT. LTD. versus CELEM S.A. OF FOS 34320 ROUJAN, FRANCE & ANR.

M/S ALCON ELECTRONICS PVT. LTD. versus CELEM S.A. OF FOS 34320 ROUJAN, FRANCE & ANR.

The English Court's order, passed after due process with reasoned findings and quantified costs, is a foreign judgment on merits, not falling within any exception of Section 13 CPC and is therefore conclusive and executable in India as a decree under Section 44A. The costs awarded are not penalties or taxes and are not precluded by Explanation 2 to Section 44A. Indian law does not bar execution of interest on costs; thus, both the order and interest are executable in India.

Parties
Appellant: M/S ALCON ELECTRONICS PVT. LTD.; Respondents: CELEM S.A. OF FOS 34320 ROUJAN, FRANCE & ANR.
Jurisdiction
India
Judgment Date
09 December 2016
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal Against High Court Order Dismissing Challenge to Execution of Foreign Judgment
Outcome
Appeal dismissed with costs.
Legal Topics
Enforcement of Foreign Judgment, Interpretation of Sections 13 and 44 a of CPC, Recognition and Execution of Costs Decrees, Interest on Costs, Conclusive Nature of Foreign Judgments

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Parties

M/S ALCON ELECTRONICS PVT. LTD.

Appellant

CELEM S.A. OF FOS 34320 ROUJAN, FRANCE & ANR.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal Against High Court Order Dismissing Challenge to Execution of Foreign Judgment

  1. 1 Whether the order passed by the English Court falls within the exceptions to Section 13 of the CPC and is not conclusive?
  2. 2 Whether the order amounts to a 'decree' and is executable in India under Section 44A of CPC?
  3. 3 Whether the decree for costs falls within Explanation 2 of Section 44A(3) and is thus inexecutable?

Ratio Decidendi

The English Court's order, passed after due process with reasoned findings and quantified costs, is a foreign judgment on merits, not falling within any exception of Section 13 CPC and is therefore conclusive and executable in India as a decree under Section 44A. The costs awarded are not penalties or taxes and are not precluded by Explanation 2 to Section 44A. Indian law does not bar execution of interest on costs; thus, both the order and interest are executable in India.

Court Disposition

Appeal dismissed with costs.

Orders

  • Execution petition filed by respondents for execution of the English Court's order is maintainable and allowed.
  • No interference with the impugned order of the High Court.