SC: Limitation period for Executing a Decree passed by Foreign Court in India will be the Limitation prescribed in Reciprocating Foreign Country (Read Judgement)

The Supreme Court bench comprising of Justice Deepak Gupta and Justice Aniruddha Bose was dealing with the question - “What is the limitation for filing an application for execution of a foreign decree of a reciprocating country in India?”

The facts of the case are that the appellant Bank of Baroda filed a suit against the Vysya Bank for recovery of its dues on in London. This suit was decreed by the High Court of Justice, Queens Bench, Divisional Commercial Court of London on and a decree for US $1,267,909.26 along with interest thereon was passed in favour of the appellant bank and against Vysya Bank. The decree was not challenged and became final.

Almost 14 years after the decree was passed by the London Court for execution of the same in terms of Section 44A read with Order 21 Rule 3 of the Code of Civil Procedure, 1908(CPC) for recovery. 

The Supreme Court of India held that the limitation period for executing a decree passed by a foreign court (from reciprocating country), in India will be the limitation prescribed in the reciprocating foreign country, subject to the decree being executable in terms of Section 13 of the CPC. As India becomes a global player in the international business arena, it cannot be one of the few countries where the law of limitation is considered entirely procedural.

It also stated that the period of limitation would start running from the date the decree was passed in the foreign court of a reciprocating country. However, if the decree holder first takes steps in aid to execute the decree in the cause country, and the decree is not fully satisfied, then he can then file a petition for execution in India within a period of 3 years from the finalisation of the execution proceedings in the cause country i.e. the country in which the decree was issued.

Read the Judgement: