INDIA Law and Practice Contributed by: Nitin Sarin and Vistasp Irani, Sarin & Co
2.6.7 Judgments in Foreign Currencies Indian courts would render a judgment in a foreign currency upon request and upon the satisfaction of sufficient cause. 2.6.8 Limitations on Lessors’ Actions Following Termination As long as the court does not form the opinion that the default interest or the penalty imposed on the lessee is excessive or uncalled for, there are no limitations on a lessor’s ability to recover default interest or charge additional rent following the termination of the lease for default. If a court concludes that the default inter - est or penalty on the lessee is not sustainable, it may levy a rate of interest on its own accord, which would ordinarily be the prevailing market rate of interest. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees A lessor under an aircraft lease seeking enforcement of such a lease would not be required to pay any taxes or fees. The lessor may, however, have to pay any unpaid taxes that were the lessee’s responsibility, in order to export the aircraft from the country. 2.6.10 Mandatory Notice Periods If the lease terms provide a notice period, then such notice period must be adhered to unless specifically waived by the lessee. 2.6.11 Lessees’ Entitlement to Claim Immunity In India, the doctrine of sovereign immunity does not apply to statutory corporations or bodies incorporated under the (Indian) Companies Act, 2013, nor to any government-owned entities. This doctrine applies only to exercising certain sovereign functions the state per - forms. 2.6.12 Enforcement of Foreign Arbitral Decisions India has ratified the Geneva Convention and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Any foreign award under the New York Convention can be enforced in India in accordance with the provisions of Part II of the (Indi - an) Arbitration and Conciliation Act 1996. Where the court concerned in India is satisfied that such a for - eign award is enforceable under the Act, the award is deemed to be a decree of that court and enforceable
• a court of competent jurisdiction has not pro - nounced it; • it has not been given on the merits of the case; • it appears on the face of the proceedings to be founded on an incorrect view of international law or a refusal to recognise the law of India in cases where such law is applicable; • the proceedings in which the judgment was obtained were opposed to natural justice; • it has been obtained by fraud; or • it sustains a claim founded on a breach of any law in force in India. Section 44A, however, only refers to decrees or judg - ments under which a sum of money is payable. Essen - tially, it must be a money decree to fall within the pur - view of Section 44A. Enforcement of Judgments from Non- Reciprocating Territories In the absence of any reciprocal arrangement or treaty, a suit will have to be filed to enforce any such judg - ment or order obtained. The United Kingdom and Northern Ireland have been declared as reciprocating territories for the purpose of Section 44A. Curiously, there is no such arrangement with the USA. In a suit on a foreign judgment, the Indian court can - not go into the merits of the original claim nor ques - tion its correctness or propriety. Through precedent, the courts have held that the word “judgment” in the expression ”foreign judgment” has been assigned the same meaning as given to it in English law, whereby it refers to the decree or order of a foreign court. A foreign judgment must be final and conclusive in the court in which it is passed in order to be considered a valid cause of action. In order to establish that a final and conclusive judg - ment has been pronounced, it must be shown that, in the court in which it has been pronounced, it conclu - sively, finally and forever established the existence of the right of which it is sought to be made conclusive evidence in India to make it res judicata (ie, a thing conclusively decided between parties).
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