Foreign judgment conclusive under civil procedure law bars a conflicting declaration on partnership subsistence and award validity.
Section 13 of the Code of Civil Procedure was treated as making a foreign judgment conclusive where a foreign court adjudicates the matter before it and none of the statutory exceptions applies, including lack of competent jurisdiction, absence of merits, denial of applicable law, breach of natural justice, fraud, or illegality. On that basis, the judgment upholding the arbitration award was accepted as binding between the parties. A further declaration that the partnership subsisted was held inconsistent with that conclusive determination and was therefore unavailable, as it would undermine the binding effect of the foreign judgment and serve no useful purpose.
Issues: (i) Whether the decision of the Indore High Court constituted a foreign judgment conclusive between the parties under Section 13 of the Code of Civil Procedure, 1908. (ii) Whether the appellants could still obtain a declaration that the partnership subsisted despite the foreign judgment upholding the validity of the arbitration award.
Issue (i): Whether the decision of the Indore High Court constituted a foreign judgment conclusive between the parties under Section 13 of the Code of Civil Procedure, 1908.
Analysis: The expression "foreign judgment" in Section 13 was held to mean an adjudication by a foreign court upon the matter before it. The exceptions in Section 13 relating to competent jurisdiction, decision on the merits, refusal to recognise the law of British India, natural justice, fraud, and breach of law were examined. The transfer of proceedings within Indore was treated as a matter for the courts of that State, and the High Court of Indore's own determination that it was the proper court was accepted as conclusive. The appellate order sustaining the award was based on a judgment on the merits rendered by the trial judge and left standing on appeal. The Court also held that it was enough if the matter directly adjudicated upon was the validity of the award, and that every step in the reasoning need not itself have been expressly in issue.
Conclusion: The Indore High Court judgment was a foreign judgment within Section 13 and was conclusive between the parties as to the validity of the award.
Issue (ii): Whether the appellants could still obtain a declaration that the partnership subsisted despite the foreign judgment upholding the validity of the arbitration award.
Analysis: Once the award was held valid and binding, the appellants were under a duty to abide by it. In that situation, a declaration that the partnership continued would be inconsistent with the conclusive effect of the foreign judgment and would serve no useful purpose. The interpretation of the award itself was not a matter in controversy in the British India suit.
Conclusion: The declaratory relief could not be granted.
Final Conclusion: The foreign judgment was binding and barred the appellants' challenge to the award and the consequential declaratory relief, so the appeal failed in full.
Ratio Decidendi: A foreign judgment is conclusive under Section 13 of the Code of Civil Procedure, 1908 when the foreign court has adjudicated upon the matter before it and none of the statutory exceptions applies, and a declaration inconsistent with that binding adjudication cannot be granted.
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