Reviewed and Validated by: Naman Jain, Associate
Introduction – Enforcement of Court Judgments
Enforcement of Court Judgments under the Code of Civil Procedure, 1908
In India, the enforceability of court judgments is governed by the Code of Civil Procedure, 1908 in India. A judgment is defined by CPC, 1908 to mean the statement given by the Judge of the grounds of a decree or order. Kindly note that subject to certain conditions, foreign judgments are enforceable in India. Pertinently, they also act as ‘Res Judicata’ for similar matters and between the same parties. The conditions that need to be satisfied are that the foreign judgment must have been passed basis of the merits of a case and by a court of competent jurisdiction. A suit for obtaining a judgment can be filed either at the place where the defendant resides or carries on business or personally works for gain or at the place where the cause of action has arisen. The institution of a suit is by way of the presentation of pa laint before the court having the relevant pecuniary jurisdiction.
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Enforcement of Arbitral Awards in India
On the other hand, the enforceability of arbitral awards is governed by the provisions of the Arbitration and Conciliation Act, 1996 (A&C Act, 1996). The decision of an arbitral tribunal, whether in a domestic or international arbitration is considered to be an ‘Arbitral award’. The arbitral award also includes an interim award. Kindly note that subject to certain conditions, foreign arbitral awards are enforceable in India. These conditions include the fact that the award must be made under arbitration which is valid under the law applicable thereto and the subject matter of the award is capable of settlement by arbitration under Indian laws. The enforceability of the foreign award should also not be contrary to the public policy or law of India. An application before a court having territorial jurisdiction needs to be filed for the enforcement of both domestic as well as international arbitral awards.
Execution of Court Judgments and Arbitral Awards in India
The application for enforcement of the arbitral award must either include the original or certified copy of the arbitral award and must specify the claim awarded to the claimant.
The execution of court judgments and arbitral awards will depend on their domestic or foreign nature. In the context of domestic judgments, as soon as a decree is passed by a competent court, the decree-holder may initiate execution proceedings under Order XXI of the Code of Civil Procedure, 1908. The executing court may order the attachment and sale of the property of the judgment debtor, garnishee proceeding, or even arrest and detention in some cases. Concerning foreign judgments, if a foreign judgment is from a reciprocating territory (notified by the Indian government under Section 44A of CPC), it can be executed in India directly as if it is a judgment of an Indian court. But the judgment being from a non-reciprocating territory, a new suit is to be filed in India based on the foreign judgment, which has to satisfy the conditions of Section 13 of CPC that it is not been procured by fraud, not been opposed to natural justice, no such judgment which would be contrary to Indian law.
Enforcement of Court Judgments
Similarly, a domestic arbitral award is treated as a decree and enforceable, under Section 36 of the Arbitration and Conciliation Act, 1996, and once a domestic arbitral award is passed, it becomes a decree and can be enforced as such. Part II of the A&C Act, 1996 provides for enforcement of foreign arbitral awards by incorporating the New York Convention, and the Geneva Convention. An Indian court should confirm a foreign award before enforcement, and a judgment debtor may oppose enforcement on limited grounds such as incapacity of parties, absence of due process or award being contrary to public policy of India. It has been clarified by the courts that public policy should be read narrowly so as not to improperly interfere with international arbitral awards. 6] These mechanisms provide a systematic approach for executing both domestic and international judgments and awards in India, backed by a strong legal framework.
