1928 (5) TMI 1 - HC - Companies Law

Summary

Issues:
1. Suit based on a foreign judgment obtained in Singapore.
2. Defendant denies executing the promissory note and challenges the jurisdiction of the Singapore judgment.
3. Interpretation of Section 13 of the Civil Procedure Code regarding foreign judgments.
4. Whether an ex-parte foreign judgment is conclusive and entitles the plaintiff to a decree.

Analysis:

1. The plaintiff filed a suit based on a foreign judgment obtained in the Supreme Court at Singapore on a promissory note allegedly executed by the defendant. The defendant contested the claim, denying the execution of the note and challenging the validity of the Singapore judgment, which was obtained ex parte. The plaintiff's cause of action relied solely on the Singapore judgment.

2. The defendant argued that the Singapore judgment, being ex parte and against a non-resident foreigner, did not confer jurisdiction on the plaintiff to seek a decree. The court examined Section 13 of the Civil Procedure Code, which deems a foreign judgment conclusive with exceptions. The judgment must be from a court of competent jurisdiction, and the presumption can be rebutted by proof of lack of jurisdiction.

3. The court addressed the contention that an ex-parte judgment may not be considered a judgment on the merits, thus not entitling the plaintiff to a decree. Previous cases from the Madras High Court were cited, highlighting differing views on whether an ex-parte decree constitutes a decision on the merits. The court analyzed these cases to determine the applicability in the present scenario.

4. Ultimately, the court concluded that the Singapore judgment, obtained ex parte against a non-resident defendant, did not qualify as a judgment on the merits. As a result, the plaintiff could not obtain a decree based on that judgment. Despite acknowledging the potential limitations of this interpretation, the court emphasized the need to adhere to the existing legal framework. Consequently, the suit was dismissed in favor of the defendant, with costs awarded to the defendant.