Judgement of Indian Courts in USA

How to enforce Judgement of Indian Court in United States Judgement of Indian Courts in USA

How to enforce Judgement of Indian Courts in the United states

Judgement of Indian Courts in USA In the United States of America, the recognition and enforcement of foreign judgments is done through common law and state statutes as there is no uniform federal law governing the subject. For instance, New York has enacted New York Uniform Foreign Money-Judgments Recognition Act.[1]The model acts from which states derive their statutory law are: Uniform Foreign Money Judgments Recognition Act (1962) and the Uniform Foreign- Country Money Judgments Recognition Act (2005).

  • Those states that do not have codified law on recognition, rely on common law which follows the guidelines established by a leading federal case Hilton v. Guyot[2].Judgement of Indian Courts in USA In this case, the Supreme Court held that the recognition and enforcement of foreign judgments is primarily based on principles of international comity. Many states also look to common law principles reflected in the Restatement (Third) of Foreign Relations Law, which is broader than the Model Acts and not limited to money judgments.

  • State Statutes that are based on the model Acts as mentioned hereinabove, require the judgment to: grant or deny recovery of a sum of money; be final and conclusive between the parties; and be enforceable in the country in which the judgment as entered. The finality requirement means that intermediate and interlocutory rulings cannot be recognized.
  • Judgments for taxes, fines or other penalties are excluded from the recognition statutes. As per the 1962 Recognition Act the courts did not recognize and enforce judgments related to matrimonial or family matters. However, the 2005 Recognition Act expanded its ambit to cover judgments “for divorce, support, or maintenance, or other judgments rendered in connection with domestic relations.”[3] It is important to mention that , non-monetary judgments, including matrimonial matters, may be recognized under principles of comity, or pursuant to specific statute law.
  • 2005 Recognition Act also provides that a foreign country judgment “need not take a particular form”, and that “any competent government tribunal that issues such a judgment comes within the term ‘Court’ for purposes of this Act.”[4] However, judgment must be from an adjudicative body of the foreign country “and not the result of an alternative dispute mechanism.” Foreign arbitral awards, are thus not covered by the Act but are governed by the federal law. On the other hand, a judgment of a foreign court confirming or setting aside an arbitral award is covered by the Act.
  • Requirements to be satisfied by a foreign judgment for recognition and enforcement: 2005 Recognition Act[5]  requires a judgment holder to file a court action against the judgment debtor. This can be done through a plenary action or raising the matter as a counterclaim/crossclaim in a pending proceeding. A party seeking recognition of a foreign judgment has the burden of establishing that the 2005 Recognition Act applies to it. Some states such as Georgia and Massachusetts have made reciprocity a mandatory ground for recognition of the judgment, while it’s a discretionary ground for Florida, Idaho, Maine, North Carolina, Ohio and Texas. But the Model Recognition Acts do not require reciprocity. If a foreign judgment conflicts with American law, a court may, in proper circumstances, refuse to recognize the foreign judgment on public policy grounds. The 2005 Recognition Act provides that an action to recognize a foreign judgment must commence 15 years from the date that the foreign judgment became effective in that particular country. Some states have their own statutes of limitation.
  • Judgement of Indian Courts in USA Judgments for taxes, fines or other penalties are excluded from the recognition statutes.
  • It is important to note that some categories of judgments are enforceable under specific statutes and treaties. For instance, the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) and the Inter- American Convention on the Recognition and Enforcement of Foreign Arbitral Awards (Panama Convention) require the USA courts to honor the agreement to arbitrate and resulting award, with certain exceptions. The USA is also a party to the Convention on Settlement of Investment Disputes between States and Nationals of Other States (“ICSID”) which establishes the legal framework for settlement of investment disputes between foreign investors and sovereign states that have consented to international arbitration pursuant to the convention.How to enforce Judgement of Indian Courts in the Us
  • Method of enforcement- Under the Federal Rule of Civil Procedure 69(a)(1), “[a] money judgment is enforced by a writ of execution, unless the court directs otherwise. The procedure on execution – and in proceedings supplementary to and in aid of judgment or execution – must accord with the procedure of the state where the court is located, but a federal statute governs to the extent it applies”. Many state laws include injunctions, orders of attachment and receivership and notices of pendency as remedies to enforce foreign judgments.

The model acts from which states derive their statutory law are: Uniform Foreign Money Judgments Recognition Act (1962) and the Uniform Foreign- Country Money Judgments Recognition Act (2005).

[1] New York’s Civil Practice Law and Rules (“CPLR”), Article 53

[2] 159 U.S. 113(1895)

[3] 2005 Recognition Act § 3(b)(3)

[4] Section 2, cmt. 3

[5] Section 6

Leave a Reply or a Query