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Issues: Whether the foreign ex parte decree passed by the District Court of Colombo, on the defendant's non-appearance and on the materials shown in the record, was a decision on the merits so as to be enforceable in India under Section 13(b) of the Civil Procedure Code.
Analysis: The record showed substituted service, the filing of an affidavit by the plaintiff's agent, and the passing of a decree nisi followed by decree absolute under the Ceylon Civil Procedure Code. The relevant provisions indicated that, on default of appearance, the Court was to proceed ex parte and pass a decree nisi, with limited scope for taking evidence by affidavit only where the Code so permitted. The judgment further noted the absence of any clear material showing that oral evidence was recorded, that the affidavit was properly used as evidence, or that the mortgage was proved in the manner required by the local law. In these circumstances, the decree appeared to be a default decree rather than an adjudication after investigation of the merits.
Conclusion: The foreign decree was not a judgment on the merits within Section 13(b) of the Civil Procedure Code and could not support the suit.
Final Conclusion: The appeal failed and the suit on the foreign judgment was not maintainable, resulting in dismissal with costs.
Ratio Decidendi: A foreign ex parte decree passed on default of appearance, without proof that the Court adjudicated upon the merits of the claim, is not a judgment on the merits for the purpose of Section 13(b) of the Civil Procedure Code.