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Indian and General Investment Trust

Ltd.
v.
Ramchandra Mardaraja Deo, Raja of
Khalikote
1952 CAL 508
Bench: S Sinha
Cases citing this case:
1)Islamic Investment Co. for Gulf Bahamas Ltd. v Symphony
Gems N.V. and others
2) Morlays (B’Ham) Ltd. v. Roshanlal Ramsahai and Another

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Ratio: A cause of action may
arise in a foreign country,
but ‘cause of action’ is not a
general ground of
jurisdiction in an
international sense.

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INTRODUCTION
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◈ Two applications: suing as trustees and for an
order for certified copies of orders passed by
the HC and the SC of England to be
transmitted to DC for execution.

◈ Filed u/s 44A r/w 39 of CPC,1908.


FACTS
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◈ Khalikote and Atagea – zemindary estates(Orissa) –
respondent= present zamindar.

◈ Governed by Mitakshara School of Hindu law

◈ His son not party to proceedings.


◈ 1903: father (late) burdened by debts & for govt. revenue
conceived to raise a loan by providing zemindary properties
as security.
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◈ Application – HC of Madras – order appointing late Raja as
Guardian of minor son’s property with power to mortgage
son’s share to raise debenture loan.
◈ 1906 – second mortgage – entire process repeated.
◈ Questions raised on order as to whether HC had jurisdiction
and whether in a Mitakshara family a guardian could enter
into a personal covenant binding on the minor.
◈ Rajah died in 1909.
◈ Some of the mortgage money had already been realised by
then.
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◈ Writ issued by HC in England requiring the
defendant to cause appearance.

◈ Respondent refused to accept service of writ and


stated that he was a non-resident foreigner holding
no property moveable or immovable in England
and so the English Courts has no jurisdiction over
the matter.
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◈ The HC passed orders directing the plaintiff to
pay a certain sum of money.

◈ Before the orders were passed, India had been


declared an independent country which makes
it necessary to apply the principles of private
international law.
ISSUES
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◈ Jurisdiction of Calcutta High Court.
◈ Whether the orders of the Courts of England
are binding upon the respondents.
◈ Whether the foreign decree falls within several
exceptions u/s 13 of CPC.
JURISDICTION OF CALCUTTA HIGH COURT
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◈ AG- cannot file foreign decree in every court but only in
court where execution is contemplated.

◈ Mr. Chaudhary – s.44A lays down no restrictions. Can file in


any court and get it transmitted.

◈ Court held: intention not clear in section.

◈ Jurisdiction to deal with objection that decree falls under


exceptions u/s 13 of CPC.
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◈ Case governed by municipal law and private
international law.
◈ No direct solution to dispute.
◈ Rules followed in India. English rules can no
longer be followed.
◈ Indian courts – liberty to lay down and follow
their own conflict of law rules.
What section 13 of CPC says:
13 A foreign judgment shall be conclusive as to any matter thereby directly
adjudicated upon between the same parties or between parties under whom
they or any of them claim litigating under the same title except.
(a) Where it has not been pronounced by a court of competent jurisdiction;
(b) Where it has not been given on the merits of the case;
(c) Where it appears on the face of the proceedings to be founded on an
incorrect view of international law or a refusal to recognise the law of
India in cases in which such law is applicable;
(d) Where the proceedings in which the judgment was obtained are opposed
to natural justice;
(e) Where it has been obtained by fraud;
(f) Where it sustains a claim founded on a breach of any law in force in
India.
JUDGEMENT
14 1)The following does not confer jurisdiction:
◈ Moneys stipulated to be paid in London
◈ Mere allegiance
◈ Loan raised to foreign country.
◈ Cause of action not sufficient.
2) Exparte decree after proper service of summons is decision on merits.
3) Issuing service, permitting non-service of it and yet acting upon it amounts
to violation of principles of natural justice.
4) No authorization to enter into personal covenant on behalf of minor.
5) Judgements with no jurisdiction can be enforced u/s 44A.
6) The applications were dismissed with cost.
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