Enforcement of Foreign Judgments in India: What Actually Works and What Fails

Obtaining a favorable judgment from a foreign court is often seen as the end of a commercial dispute. However, for many NRIs and overseas businesses with interests in India, the real challenge begins only after the judgment is passed. Enforcement of foreign judgments in India follows strict statutory rules, and many decrees that appear legally sound abroad become ineffective once enforcement is attempted in Indian courts.

Understanding why this happens requires a clear grasp of India’s legal framework governing foreign judgments.

The Basic Legal Framework in India

Indian law does not automatically recognize or enforce every foreign judgment. Enforcement depends on:

• The country where the judgment was passed

• The nature of the judgment (money decree or otherwise)

• Compliance with procedural and substantive conditions under Indian law

Indian courts do not re-try the entire dispute, but they do conduct a legal examination before allowing enforcement.

Reciprocating vs Non-Reciprocating Countries

A key distinction under Indian law is between reciprocating territories and non-reciprocating territories.

• Reciprocating countries are those notified by the Indian government. Judgments from designated courts in these countries can be directly executed in India as if they were Indian decrees, subject to limited scrutiny.

• Non-reciprocating countries require a fresh civil suit in India based on the foreign judgment. The judgment serves only as evidence of the claim, not as an executable decree.

This distinction alone determines whether enforcement will be relatively streamlined or procedurally burdensome.

Money Decrees vs Other Orders

Only money decrees are capable of direct execution in India. Orders relating to:

• Injunctions

• Specific performance

• Declaratory reliefs

are generally not executable and require fresh proceedings. Many parties overlook this limitation and assume that any foreign court order can be enforced against Indian assets, which is not the case.

The Test of Conclusiveness

Even judgments from reciprocating countries must satisfy the requirement of being “conclusive.” Indian courts examine whether:

• The foreign court had competent jurisdiction

• The judgment was delivered on merits

• Due process was followed

• The judgment is not opposed to Indian public policy

If a judgment fails any of these tests, enforcement can be refused.

Common Grounds on Which Enforcement Fails

Foreign judgments frequently fail enforcement in India due to:

• Lack of proper jurisdiction of the foreign court

• Ex parte judgments without meaningful adjudication

• Judgments obtained through fraud or suppression of facts

• Violation of principles of natural justice

• Conflict with Indian statutory law or public policy

These objections are not technicalities; they go to the root of enforceability.

Service of Summons and Due Process

One of the most common enforcement failures arises from improper service of summons in the original foreign proceedings. If an Indian court finds that the defendant was not given adequate notice or opportunity to be heard, the judgment may be declared unenforceable, even if it is valid in the foreign country.

Proper service and procedural fairness are critical for enforcement success.

No Automatic Enforcement of Arbitration Awards and Judgments

Another frequent misunderstanding is treating foreign court judgments and foreign arbitral awards as identical. They follow separate legal regimes. While some arbitral awards may be enforced under international conventions, foreign court judgments must strictly comply with domestic procedural law.

Mixing these two concepts often leads to incorrect enforcement strategies.

Time, Cost, and Practical Barriers

Even when legally enforceable, foreign judgments may face practical hurdles such as:

• Delay due to objections and appeals

• Difficulty tracing attachable assets in India

• Resistance from judgment debtors through procedural challenges

Enforcement is therefore not merely a legal question but also a procedural and evidentiary one.

Conclusion

Enforcement of foreign judgments in India is governed by structured legal principles rather than automatic recognition. Judgments from reciprocating countries, money decrees, proper jurisdiction, and adherence to due process are critical factors that determine success. Many foreign decrees fail not because they are weak on merits, but because they do not align with India’s enforcement framework. Understanding these realities is essential for appreciating how cross-border commercial judgments are treated under Indian law.