Foreign Summary Decrees Under Scrutiny: Supreme Court Reaffirms ‘Merits’ Test Under Section 13 Of CPC

Introduction

1. The Supreme Court of India in Griesheim GMBH v. Goyal MG Gases (P) Ltd. [1] , (“Messer Griesheim”), examined the enforceability of an English summary judgment in India under Section 44A read with Section 13 of the Code of Civil Procedure, 1908 (“CPC”). Dismissing the decree-holder’s appeal, the Supreme Court held that a foreign decree obtained through summary procedure where leave to defend is refused despite the existence of bona fide triable issues cannot be regarded as a judgment “on the merits” within the meaning of Section 13(b) of CPC. The Supreme Court further held that such a decree also falls foul of the principles of natural justice under Section 13(d) of CPC and is therefore not conclusive or enforceable in India.