Case Note & Summary
The appeals arose from execution proceedings to enforce foreign costs decrees obtained by the respondents (Ananda Bazar Patrika Limited and Aveek Sarkar) against the appellants, who were the legal heirs of the original plaintiff in a defamation suit before the English High Court. After the English suit was stayed, the English court ordered the original plaintiff to pay costs to the respondents, and costs certificates were issued on 28 June 1996 in sterling amounts. The respondents filed execution applications in the Bombay High Court under Section 44-A of the Code of Civil Procedure, 1908, which allows execution of decrees of reciprocating territories as if they were District Court decrees. Notices were issued under Order 21 Rule 22 CPC to the appellants as judgment debtors. The appellants objected, but their objections were dismissed on 8 August 2003, making the notices absolute and allowing execution. The appellants appealed, obtaining an interim stay on 13 April 2004. After Supreme Court intervention, the High Court on 29 April 2008 modified the stay, requiring the appellants to furnish a bank guarantee within six weeks (by 10 June 2008) to continue the stay; the bank guarantee was not furnished, so the decrees became executable from 10 June 2008. The appeals against confirmation of execution were eventually dismissed by the Division Bench on 30 March 2010, and the Supreme Court dismissed the special leave petition on 13 October 2010. In the execution chamber summons, the learned Single Judge determined 10 June 2008 as the date for converting the sterling amounts to Indian rupees, being the first date when execution could proceed after the lifting of the stay. The appellants challenged that order, contending that the conversion date should be the date of the foreign decrees (28 June 1996). The core legal issue was the correct date for conversion of a foreign currency decree under Section 44-A CPC. The Court analyzed the scheme of Section 44-A and Order 21 Rule 22, emphasizing that the foreign decree itself is executed as a District Court decree. The filing of a certified copy and issuance of notice are procedural steps, but the obligation and quantum of the decree are determined by the foreign decree. The Court held that the foreign decree fixes the liability in foreign currency, and any subsequent delay due to procedural obstacles or appeals does not alter the debt's value. Accordingly, the conversion must occur at the exchange rate prevailing on the date of the foreign decree. The Division Bench allowed the appeals, set aside the Single Judge's order to the extent it fixed 10 June 2008 as the conversion date, and directed that the rupee equivalent be determined as of 28 June 1996.
Headnote
A) Civil Procedure - Execution of Foreign Decrees - Conversion Date for Foreign Currency Decree - Code of Civil Procedure, 1908, Section 44-A, Order 21 Rule 22 - The date for conversion of a foreign currency decree into Indian rupees is the date of the foreign decree itself, not the subsequent date when execution becomes enforceable after the removal of an appellate stay - Held that the relevant date is 28.06.1996, being the date of the costs certificates/decree (Paras 2-3).
Issue of Consideration
What is the relevant date for conversion of a foreign currency decree into Indian rupees under Section 44-A of the Code of Civil Procedure, 1908?
Final Decision
Appeals allowed. The order of the learned Single Judge dated 13.08.2013 set aside to the extent it fixed 10.06.2008 as the conversion date. It was held that the relevant date for conversion of the foreign currency decrees into Indian rupees is the date of the foreign decree, i.e., 28.06.1996. The exchange rate prevailing on that date shall apply.
Law Points
- Legal points not extracted
- Conversion date for foreign decree is date of foreign decree under Section 44-A CPC
- notice under Order 21 Rule 22 CPC mandatory before execution
- foreign decrees of reciprocating territory executed as if passed by District Court
Case Details
2026 LawText (BOM) (05) 99
Appeal No.461 of 2013, Appeal No.462 of 2013, Appeal No.463 of 2013
S.J. Vazifdar, G.S. Patel
Citation not available, 2013 BHC-OS 12273-DB
J.P. Sen, Gaurang R. Mehta, Virendra Tulzapurkar, Sanjay Kothari, H.N. Vakil, Sunil Chavan
Gopika Nina Pillai, Krishna Rajan Pillai, Shiv Rajan Pillai
Madhubhai Z. Patel, Urmilaben M. Patel, Ananda Bazar Patrika Limited, Aveek Sarkar, Vir Sanghvi, Gautam Banerjee, Bijit Kumar Basu
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Nature of Litigation
Execution of foreign decrees/costs certificates under Section 44-A of the Code of Civil Procedure, 1908, with dispute over conversion date of foreign currency amounts
Remedy Sought
Appellants/judgment debtors sought to set aside the learned Single Judge's order fixing 10.06.2008 as the conversion date and instead sought conversion at the rate prevailing on the date of the foreign decrees (28.06.1996)
Filing Reason
The learned Single Judge determined the conversion date as 10.06.2008, the first date when decrees became executable after removal of stay; appellants contended the date should be the date of the decree, i.e., 28.06.1996
Previous Decisions
The executing court (Single Judge) had dismissed objections to execution and made notices absolute on 08.08.2003; appeals against that were eventually dismissed by the Division Bench on 30.03.2010, and the Supreme Court dismissed the special leave petition on 13.10.2010. The present appeals were against the subsequent order on conversion date dated 13.08.2013.
Issues
What is the relevant date for conversion of a foreign currency decree into Indian rupees under Section 44-A of the Code of Civil Procedure, 1908?
Submissions/Arguments
Appellants: The relevant date for conversion is the date of the foreign decree, i.e., 28.06.1996.
Respondents: The relevant date is the date when the decree became executable after the removal of the stay, i.e., 10.06.2008, as held by the learned Single Judge.
Ratio Decidendi
The relevant date for conversion of a foreign currency decree into Indian rupees for the purpose of execution under Section 44-A of the Code of Civil Procedure, 1908 is the date of the foreign decree itself, not the subsequent date when execution becomes enforceable after removal of any stay or procedural bar.
Judgment Excerpts
These proceedings require the determination of the date on which the amount decreed in foreign currency by a Superior Court of a reciprocating territory is to be converted to Indian currency. ... We have however, held that the relevant date is the date of the foreign decree.
We have upheld Mr.J.P. Sen's submission on behalf of the appellants that the rupee equivalent of the costs certificates / decrees issued in sterling must be determined on the basis of the exchange rate prevailing on the date of the costs certificates / decrees i.e. 28.06.1996.
Procedural History
In 1993, a defamation suit was filed in the English High Court. In 1994, stay was granted to defendants and costs were reserved. On 08.06.1995, the Court of Appeal dismissed appeals and ordered costs to be paid. On 28.06.1996, costs certificates were issued in sterling. In 1997, execution applications were filed in the Bombay High Court under Section 44-A CPC; notices under Order 21 Rule 22 were issued. On 08.08.2003, the Single Judge dismissed objections and made notices absolute. Appeals were filed and interim stay was granted on 13.04.2004. On 21.04.2008, the Supreme Court modified stay and directed furnishing of security. On 29.04.2008, the High Court ordered stay subject to bank guarantee within six weeks (by 10.06.2008); bank guarantee was not furnished, making decrees executable from 10.06.2008. On 30.03.2010, the Division Bench dismissed appeals, confirming executability. On 13.10.2010, the Supreme Court dismissed special leave petition. On 13.08.2013, the Single Judge in chamber summons fixed conversion date as 10.06.2008. On 21.12.2013, the Division Bench allowed these appeals, fixing conversion date as 28.06.1996.
Acts & Sections
- Code of Civil Procedure, 1908: 44-A, Order 21 Rule 22
