M/s Alcon Electronics Pvt. Ltd. v. Celem S.A. of Fos 34320 Roujan, France
Background
The respondents had sued the appellant (an Indian company) for patent infringement before the English High Court (Chancery Division, Patents Court). After the appellant unsuccessfully challenged that court's jurisdiction, the English Court ordered it to pay costs of £12,229.75 for that failed challenge. When the respondents sought to execute this costs order in India through the District Court at Nasik, the appellant argued the English order was an "interlocutory" order and therefore not executable as a foreign decree, and also objected to interest being charged on the costs. Both the executing court and the Bombay High Court rejected this objection, leading to the present appeal.
Decision Breakdown
The Supreme Court held that the English Court's costs order, even though interlocutory in the sense of being made during the suit, was conclusive and executable on the specific issue of costs it decided, and that foreign judgments/orders disposing of discrete issues can be enforced in India as "foreign judgments" under the Civil Procedure Code's rules on reciprocal enforcement. On the interest question, the Court reasoned that although Indian law (Section 35(3) CPC) was amended to remove automatic interest on costs, this did not disable Indian courts from recognising and enforcing a foreign court's own statutory right to interest on costs (8% under the UK's Judgments Act, 1838) as part of giving full effect to the foreign remedy. It emphasised the principle of reciprocal comity between courts of different nations in enforcing legitimate foreign rights. The execution petition was held maintainable, the High Court's order was upheld, and the appeal was dismissed with costs.
Lesson Learnt
An Indian court will enforce a foreign court's costs order, including any interest attached to it under that foreign country's own law, even where Indian procedural law itself does not provide for interest on costs, so long as the foreign order finally and conclusively decided the specific matter in question.