The Supreme Court has held that the period of limitation for executing a decree passed by a foreign court (from a reciprocating country) in India would be applicable as per the laws of limitation applicable in that country.
The Division Bench comprising of Justice Deepak Gupta and Justice Anirudhha Bose while
hearing the plea of Bank of Baroda in whose favour a London court passed a decree of US
$1,267,909.26 along with interest, observed that the view worldwide appears to be that the limitation law of the cause country should be applied even in the forum country.
Also, in cases where there is no remedy, it virtually takes away the right of the decree-holder to have the decree executed as well as gives a similar right to the judgment debtor to challenge the execution of the decree.
The appellant bank filed execution proceedings after a lapse of almost 14 years which were
dismissed by the courts below on the ground of inordinate delay. K.K. Venugopal appearing for the appellant pleaded that the Act does not prescribe any period of limitation for execution of a foreign decree passed in a reciprocating country. He stated that in such eventuality principles of delay as applicable to writ proceedings may apply.
Advocate V.V.S Rao appearing for the respondent stated that the law of limitation of England would apply to this case and even if Indian Law is applied the decree is executed beyond the prescribed term of 12 years.
Justice Deepak Gupta while dismissing the appeal held that the limitation period for executing a decree passed by a foreign court in India will be the limitation prescribed in the reciprocating foreign country i.e. as per the law of a foreign country which is subject to decree being executable in terms of Section 13 of CPC.