Monday, September 18, 2023

Enforcement of foreign judgments in Sri Lanka


Question:
A divorce decree obtained in Australia Federal Circuit Court is to be registered in the District Court of Kurunegala as claimed by the judgment-creditor. What are the relevant laws, act, ordinances and case laws with regard to the above situation that recognizes such legal ground?
Reciprocal Enforcement of Judgments Ordinance, No.41 of 1921, provides provisions for the enforcement in Sri Lanka of judgments obtained in the Superior Courts of the United Kingdom and of other parts of Her Majesty’s realms and territories. The Ordinance which governs the instant case as Australia is also a part of Her Majesty’s dominions.
Section 3 of this Ordinance recognizes the legal validity of enforcing in Sri Lanka of judgments superior courts in the United Kingdom. As it states,
                  3 (1). Where a judgment has been obtained in a superior court in the United Kingdom, the judgment-creditor may apply to the registering court at any time within twelve months after the date of the judgment or such longer period as may be allowed by the court to have the judgment registered in the court and on any such application the court may if in all the circumstances of t he case they think it is just and convenient that the judgment should be enforced in Sri Lanka and subject to the provisions of this section, order the judgment to be registered accordingly.
                 (2) No judgment shall be ordered to be registered under this Section if-   
a)    the original court acted without jurisdiction; or
b)    the judgment-debtor, being a person who was neither carrying on business nor ordinarily resident within the jurisdiction of court did not voluntarily appear or otherwise submit or agree to submit to the jurisdiction of that court; or …………..
                 (3) Where a judgment is registered under this section-
a)    the judgment shall as from the date of registration, be of the same force and effect, and proceedings may be taken thereon, as if it had been a judgment originally obtained or entered up on the date of registration in the registration court;
b)    the registering court shall have the same control and jurisdiction over the judgment as it has over similar judgments given by itself, but in so far only as relates to execution under this section;
c)    the reasonable costs of  and incidental to the registration of the judgment (including the costs of obtaining a certified copy thereof from the original court and of the application for registration ) shall be recoverable in like manner as if they were sums payable under the judgment;
d)    the same stamp duties shall be payable in respect of proceedings under this Ordinance as would have been payable if the judgment had been an original judgment of the registering court.

(4) Rules of court shall provide-
a.    for service on the judgment-debtor of notice of the registration of judgment under this section and;
b.    for enabling the registering court on an application by the judgment-debtor to set aside the registration of a judgment under this section on such terms as the court thinks fit and,
c.     for suspending the execution of a judgment registered under this section until the expiration of the period during which the judgment-debtor may apply to have the registration set aside.
As these above provisions are applicable only for the judgments of superior courts in the United Kingdom , this ordinance extends the provisions for the judgments of the other parts of Her Majesty’s realms and territories to be registered in Sri Lanka.
As Subsection 2(1) recognizes “United Kingdom” means the United Kingdom of Great Britain and Northern Ireland and “superior courts in the United Kingdom” means the High Court in England or Northern Ireland and the Court of Session in Scotland.
As the section 6 states,
6(1) Where the Minister is satisfied that reciprocal provisions have been made by the Legislature of any part of Her Majesty’s Realms and Territories outside the United Kingdom for the enforcement within that part of Her Realms and Territories of judgments obtained in any District Court or in the Supreme Court of Sri Lanka, the Minister may, by order published in the Gazette declare that this Ordinance shall extend  to judgments obtained in a superior court in that part of Her Realms and Territories in like manner as it extends to judgments obtained in a superior courts in the United Kingdom, and on any such Order being made this Ordinance shall extend accordingly.
For the execution of this Ordinance the relevant Minister published the countries to which this Ordinance applies on 23.01.1925 and then since the section 3 of the Ordinance no.41 of 1921 regulates regarding the recognition, setting an application to be registered, effects of such registration and the rules of court are extended accordingly to the other parts of Her Majesty’s dominions under the section 6 (1).
These statutory provisions pave the way for a registration of judgments of a country like Australia as a part of Her Majesty’s dominions, unlike it is for the U.K. ,the other parts are governed by the very Section 6(1) which expands for the former.
To the question as to how the Ordinance 1921 interprets terms, explanations are as follows,
The section 2(1) does it the way hereinafter, in this Ordinance, unless the context otherwise requires-
a ‘judgment’ means any judgment, decree or order given or made by a court in any civil proceedings, where before  or after the passing of this ordinance……
a judgment-debtor means the persons against whom the judgment was given and includes any person against whom the judgment is enforceable in the place where it was made.
the ‘original court’ in relation to any judgments means the court by which the judgment was given.
the ‘registering court’ in relation to any judgment means the District Court of  Colombo.
In the context of this act recognizes and enforces judgments of Australia as a colony under Her Majesty’s realms and territories, the next legal requirement is to be considered is what the superior courts in Australia are which this Ordinance states in its subsection 6(1).
Every part of Australia as a federal country New South Wales, Victoria, Australia Capital Territory, Northern Territory of Australia, Queensland, Western Australia, South Australia and Tasmania are under her Majesty’s reign to which Reciprocal Enforcement of Judgments Ordinance is applicable and extends.
The Act of Foreign Judgments No.112 of 1991 connects the nexus between the Australian Jurisdiction to the Sri Lankan Act of 1921. Part 3 of Foreign Judgments Act no.112 of 1991 says there are miscellaneous matters relating to the above mentioned enforceability.
Its Section 15 provides among other matters, states of the issuing of a certificate of judgments obtained in Australian Courts.
15(1). Subject to this Section, where an application is duly made by a judgment creditor who wishes to enforce in a country a judgment that has been given in an Australian Court, the Registrar of the court must issue to the judgment creditor;
a)    a certified copy of the judgment and
b)    a certificate with respect to the judgment containing such particulars including,
                                             I.        the causes of action to which the judgment relates and
                                          II.        the rate of interest (if any) payable on any amount payable under the judgment;
as are prescribed by the regulations or by Rules of Court.

Per se, Section 3 of this Act 1991, it interprets what an “action in personam” is as, one does not include a matrimonial cause or proceedings in connection with,
a)    matrimonial matters; or……..
and what a “judgment” means a.) a final or interlocutory judgment or order given or made by a court in civil proceedings; or….
and who a “judgment creditor” means the person in whose favour the judgment was given,….
and who a “judgment debtor” means in relation to a judgment means the person against whom the judgment was given ( whether or not a sum of money is payable under the judgment) and includes a person against whom the judgment is enforceable under the law of the original court.
and what an “original Court” is in relation to a judgment, means the court by which the judgment was given.
There is no contravention in the case laws with regard to the statutory provisions. In the case of Lalwani v. Indian Overseas Bank. 1998 (3) Sri LR 197, the petitionerrespondent Bank obtained two judgments of the Supreme Court of HongKong dated 10th June, 1983 and 9th March, 1990. On 25/05/1990 the Bank came to the District Court of Colombo claiming the registration of the duo citing the above mentioned section 3(1) and section 6(1) of 1921 No.41 Act. And in terms of the both sections of the Reciprocal Enforcement of Judgments Ordinance, the District Court of Colombo ordered to be registered by an Order. The way the circumstances unfolded was subsequently HongKong ceased to be a part of Her Majesty’s Dominions in 1997.
As the petitionerrespondent’s counsel contended, the recognition of the said foreign judgments under the Sec.6(1) said Ordinance was connected with the submission of the Gazette on 23/01/1925 by the relevant minister.
In spite of the change in the state of HongKong, K.W.Petchett in his book Recognition of Commercial Judgments and Awards in the Commonwealth (1984) at page 39, cites that repealing the statute in which country the original court is situated does not affect the jurisdiction under what initial order was given. Validity of the order is not harmed in any way.
 Simultaneously, the Section 3(3) (a) of the Act No. 41 of 1921 is as recognized the original court’s judgment, be of the same force and effect after the date of the registration. And in Section 3(3) (b) recognizes the same control and jurisdiction of the registering court over the judgment.
With this statutory legal background the Court of Appeal judges dismissed the appeal with costs and accepted the District Court’s registration order.
  In the case of Prins Gunasekera v. The Associated Newspapers of Ceylon Ltd. 2000 (3) Sri LR 122, three Supreme Court judges recognized the validity of the Ordinance. In the circumstances as stated, the petitioner had obtained an exparte judgment from the High Court of England against the respondent newspaper limited.
And claimed the registration of the judgment under the Section 3(1) of the Reciprocal Enforcement of Judgments Ordinance.
In the counter argument on the registration, the respondents said they are not obliged to act on the judgment as they are neither engaged in any business nor resident in the jurisdiction of the original court. They cited Section 3(2) (b) which as follows,
“the judgmentdebtor, being a person who was neither carrying on business nor ordinarily resident within the jurisdiction of court did not voluntarily appear or otherwise submit or agree to submit to the jurisdiction of that court; or…”
So the court stated there is no sufficient information on deciding this case whether the respondent company is either resident or engaged in any business in England and if so they have to submit to the jurisdiction of that court.
In the near future, the Supreme Court decided there is no jurisdiction to register a judgment of Canada. Varuna Jayasuriya v. Krishanjini Jayasuriya 2005 (2) Sri LR 382 did not even cite the above mentioned Ordinance. And however the court set aside the appeal claiming for the revoke of the District Court Judge’s order not to register it. Be that as it may, the said Ordinance does not recognize any judgment from any country other than the ones mentioned earlier. Canada is also of such kind.
W.M.D.Bandara
2018/10/20

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