Section 2(5) CPC — Foreign Court

16 Min Read

Introduction

Section 2(5) of the Code of Civil Procedure, 1908 defines the expression “Foreign Court.” The provision is important in matters involving judgments and decrees passed outside India, particularly when questions arise regarding their recognition, conclusiveness or enforcement in India.

Under Section 2(5), a Foreign Court means a Court situated beyond the limits of India and not established or continued by the authority of the Central Government.

The definition therefore contains two essential requirements: the Court must be situated outside India, and it must not be a Court established or continued by the authority of the Central Government.

Section at a Glance

ParticularDetails
ProvisionSection 2(5) CPC
Defined expressionForeign Court
Main subjectCourt situated outside India
First requirementSituated beyond the limits of India
Second requirementNot established or continued by the authority of the Central Government
Closely related provisionSection 2(6) — Foreign Judgment
Related provisionsSections 13, 14 and 44A CPC

Statutory Provision

Section 2(5) CPC provides:

“Foreign Court” means a Court situate beyond the limits of India and not having been established or continued by the authority of the Central Government.

The definition therefore focuses on both the territorial location of the Court and the authority under which it is established or continued.

Meaning of Foreign Court

In simple terms, a Foreign Court is a Court located outside India that is not established or continued by the authority of the Central Government.

The expression becomes particularly relevant when an Indian Court is required to consider a judgment or decree delivered by a Court outside India.

For example, where a Court in another country delivers a judgment in a civil dispute, questions may arise in India regarding whether that judgment can be recognised or relied upon. The starting point for such analysis is whether the Court that delivered the judgment qualifies as a Foreign Court under Section 2(5).

Essential Elements

1. The Court Must Be Situated Outside India

The first requirement is territorial.

The Court must be situated beyond the limits of India.

Therefore, the location of the Court is an essential part of the statutory definition.

2. The Court Must Not Be Established or Continued by the Central Government

The second requirement concerns the authority under which the Court exists.

The Court must not have been:

  • established by the authority of the Central Government; or
  • continued by the authority of the Central Government.

Both requirements must be considered when applying the definition.

Foreign Court vs Foreign Judgment

These two expressions are closely related but are not identical.

Foreign Court

Section 2(5) defines a Foreign Court as a Court situated outside India and not established or continued by the authority of the Central Government.

Foreign Judgment

Section 2(6) defines a Foreign Judgment as the judgment of a Foreign Court.

Thus:

Foreign Court → the Court

Foreign Judgment → the judgment delivered by that Court

BasisForeign CourtForeign Judgment
SectionSection 2(5)Section 2(6)
MeaningCourt situated outside India satisfying the statutory definitionJudgment of a Foreign Court
FocusJudicial institutionJudicial decision
Related provisionsSections 13 and 14Sections 13 and 14

Relationship Between Sections 2(5) and 2(6)

Section 2(5) should be read together with Section 2(6).

Section 2(5) identifies what constitutes a Foreign Court.

Section 2(6) then defines a Foreign Judgment by referring to the judgment of such a Court.

This creates a straightforward relationship:

Foreign Court → gives Foreign Judgment

The distinction becomes particularly important when determining whether Section 13 applies to a particular judgment.

Section 13 — When Foreign Judgment Is Not Conclusive

Section 13 provides the principal rules concerning the conclusiveness of foreign judgments.

A foreign judgment is generally treated as conclusive between the parties regarding matters directly adjudicated upon, subject to the exceptions specified in Section 13.

A foreign judgment is not conclusive where, among other things:

  • it has not been pronounced by a Court of competent jurisdiction;
  • it has not been given on the merits of the case;
  • it appears to be founded on an incorrect view of international law or a refusal to recognise Indian law where applicable;
  • the proceedings were opposed to natural justice;
  • the judgment was obtained by fraud; or
  • the judgment sustains a claim founded on a breach of law in force in India.

Thus, identifying a Court as a Foreign Court does not mean that every judgment delivered by it will automatically be conclusive in India.

Section 14 — Presumption as to Foreign Judgments

Section 14 provides a statutory presumption concerning foreign judgments.

Where a certified copy of a foreign judgment is produced, the Court may presume that the judgment was pronounced by a Court of competent jurisdiction unless the contrary appears from the record or is proved.

This presumption is rebuttable.

Therefore, Section 2(5) provides the definition of Foreign Court, while Section 14 deals with the evidentiary presumption relating to a judgment delivered by such a Court.

Section 44A — Execution of Foreign Decrees

Section 44A deals with the execution in India of decrees passed by Courts in reciprocating territories.

Where the statutory requirements are satisfied, a decree of a superior Court of a reciprocating territory may be executed in India as if it had been passed by the District Court in India.

The provision therefore provides a mechanism for enforcement of certain foreign decrees without requiring the decree-holder to start an entirely new suit on the foreign decree, subject to the requirements and limitations of the CPC.

Foreign Court and Reciprocating Territory

These concepts should not be confused.

Foreign Court is defined in Section 2(5).

Reciprocating territory is a separate statutory concept relevant to Section 44A.

A Court may qualify as a Foreign Court, but the execution of its decree in India under Section 44A depends upon whether the relevant statutory conditions concerning the reciprocating territory and superior Court are satisfied.

Therefore:

Foreign Court ≠ automatically a Court whose decree is directly executable under Section 44A.

Foreign Court and Jurisdiction

The question of whether a Foreign Court had jurisdiction over the parties or subject matter can become significant when its judgment is sought to be recognised in India.

Section 13 specifically provides that a foreign judgment is not conclusive where it has not been pronounced by a Court of competent jurisdiction.

Therefore, the existence of a Foreign Court is only the starting point. The jurisdiction exercised by that Court and the circumstances in which the judgment was delivered may determine whether the judgment can have legal effect in India.

Practical Example

Example 1 — Foreign Court

A civil Court situated in another country, operating independently of the authority of the Indian Central Government, falls within the definition of Foreign Court under Section 2(5).

Example 2 — Foreign Judgment

That Court delivers a judgment in favour of A against B.

The judgment delivered by that Foreign Court constitutes a Foreign Judgment within the meaning of Section 2(6).

Example 3 — Recognition in India

A seeks to rely upon the foreign judgment in India.

The Court may have to consider Section 13 to determine whether the judgment is conclusive, including whether the foreign Court had competent jurisdiction and whether any of the statutory exceptions apply.

Example 4 — Enforcement

If A seeks execution of a foreign decree in India, Section 44A may become relevant if the statutory requirements relating to a reciprocating territory are satisfied.

Common Confusions

Every Court Outside India Is Automatically a Foreign Court

The definition contains two requirements.

The Court must be situated outside India and must not have been established or continued by the authority of the Central Government.

Both aspects should therefore be considered.

Foreign Court and Foreign Judgment Are the Same

They are not.

A Foreign Court is the judicial institution.

A Foreign Judgment is the judgment delivered by that Court.

Every Foreign Judgment Is Automatically Conclusive in India

Incorrect.

Section 13 specifically provides circumstances in which a foreign judgment is not conclusive.

Every Foreign Decree Is Automatically Executable in India

Incorrect.

Section 44A provides a specific mechanism for certain foreign decrees from reciprocating territories, subject to statutory requirements.

Section 2(5) Determines Whether a Foreign Judgment Is Valid in India

Not by itself.

Section 2(5) only defines Foreign Court. Questions concerning the conclusiveness of a foreign judgment are primarily addressed through Sections 13 and 14, while execution may involve Section 44A and other provisions.

Practical Importance in Civil Litigation

Section 2(5) becomes important whenever litigation has an international element.

It may arise when:

  • a party relies on a foreign judgment;
  • a foreign decree is sought to be enforced in India;
  • a party disputes the jurisdiction of a foreign Court;
  • questions arise concerning natural justice in foreign proceedings;
  • a foreign judgment is alleged to have been obtained by fraud; or
  • the enforceability of a foreign decree is examined under Section 44A.

The definition therefore serves as the starting point for the CPC’s framework concerning foreign judicial decisions.

Section 2(6) — Foreign Judgment

Defines a foreign judgment as the judgment of a Foreign Court.

Section 13 — When Foreign Judgment Not Conclusive

Sets out the circumstances in which a foreign judgment is not conclusive in India.

Section 14 — Presumption as to Foreign Judgments

Provides a rebuttable presumption regarding the jurisdiction of the foreign Court.

Section 44A — Execution of Decrees Passed by Courts in Reciprocating Territory

Provides a mechanism for execution in India of certain decrees passed by superior Courts of reciprocating territories.

Section 47 — Questions Relating to Execution

Deals with questions relating to execution, discharge or satisfaction of decrees and can become relevant in execution proceedings involving foreign decrees.

Importance for Law Students and Judiciary Exams

Section 2(5) is a short definitional provision, but it should be memorised carefully because it forms part of the foundation for the law relating to foreign judgments.

What to Remember

  • Section 2(5) defines Foreign Court.
  • The Court must be situated beyond the limits of India.
  • It must not have been established or continued by the authority of the Central Government.
  • Section 2(6) defines Foreign Judgment.
  • Section 13 deals with the conclusiveness of foreign judgments.
  • Section 14 deals with the presumption regarding foreign judgments.
  • Section 44A deals with execution of certain foreign decrees from reciprocating territories.

Important Questions to Prepare

  1. Define “Foreign Court” under Section 2(5) CPC.
  2. What are the essential requirements of a Foreign Court?
  3. Distinguish between Foreign Court and Foreign Judgment.
  4. What is the relationship between Sections 2(5) and 2(6)?
  5. Is every foreign judgment conclusive in India?
  6. What is the significance of Section 13 in relation to foreign judgments?
  7. What is the purpose of Section 14 CPC?
  8. How does Section 44A deal with foreign decrees?
  9. Distinguish between a Foreign Court and a Court of a reciprocating territory.
  10. Why is jurisdiction of a Foreign Court relevant under Section 13?

1. Foreign Court has a statutory definition

The expression is not based solely on ordinary geographical meaning. Section 2(5) establishes specific requirements.

2. Location outside India is necessary

The Court must be situated beyond the limits of India.

3. Central Government authority is relevant

The Court must not have been established or continued by the authority of the Central Government.

4. Foreign Court and Foreign Judgment are distinct

The former refers to the Court; the latter refers to its judgment.

5. Recognition and enforcement require further examination

A judgment delivered by a Foreign Court does not automatically become conclusive or enforceable in India. Sections 13, 14 and 44A provide important parts of the relevant framework.

Key Takeaways

ConceptPrinciple
ProvisionSection 2(5) CPC
Defined termForeign Court
First requirementCourt situated beyond the limits of India
Second requirementNot established or continued by authority of Central Government
Foreign JudgmentJudgment of a Foreign Court under Section 2(6)
ConclusivenessGoverned primarily by Section 13
PresumptionSection 14
Foreign decree executionSection 44A, subject to statutory requirements
Key distinctionForeign Court = Court; Foreign Judgment = judgment of that Court

ALSO READ: Section 2(4) – District

Conclusion

Section 2(5) CPC defines a Foreign Court as a Court situated beyond the limits of India and not established or continued by the authority of the Central Government.

The provision is the starting point for understanding the CPC’s treatment of foreign judicial decisions. It should be studied together with Section 2(6), Section 13, Section 14 and Section 44A, which respectively deal with foreign judgments, their conclusiveness, the presumption concerning jurisdiction and the execution of certain foreign decrees in India.

For examination purposes, the two essential requirements should be remembered clearly: the Court must be situated outside India, and it must not have been established or continued by the authority of the Central Government.

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