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Issues: Whether a foreign ex parte decree, passed without any evidence being recorded and merely because the defendant did not appear, is a judgment on the merits within Section 13 of the Code of Civil Procedure so as to support a suit in India on the basis of that decree.
Analysis: Section 13 makes a foreign judgment conclusive only if it answers the statutory requirements, including that it must have been given on the merits of the case. A decree passed merely for default of appearance, without application of mind to the truth or falsity of the claim and without consideration of evidence, is not a decision on the merits. Non-appearance of the defendant does not by itself amount to an admission of the claim. A foreign judgment can be treated as on the merits only where the foreign court has adjudicated upon the claim after considering evidence, even if the defendant remained ex parte.
Conclusion: The foreign decree was not on the merits and could not form the basis of a maintainable suit in India; the finding against maintainability was correct.
Ratio Decidendi: For Section 13 of the Code of Civil Procedure, a foreign ex parte decree is conclusive only if the foreign court has actually adjudicated the claim on evidence and not merely decreed it by default of appearance.