Limitation period for executing a decree passed by a foreign court in India will be the limitation prescribed in the reciprocating foreign country

The Supreme Court in the matter of Bank of Baroda vs. Kotak Mahindra Bank Ltd. in Civil Appeal No. 2175 of 2020 decided on 17.03.2020 held the limitation period for executing a decree passed by a foreign court (from reciprocating country) in India will be the limitation prescribed in the reciprocating foreign country subject to the decree being executable in terms of Section 13 of the Code of Civil Procedure.

Facts
The Appellant filed a suit against Vysya Bank (predecessor of the Respondent) for recovery of its dues in London. The suit was decreed in favour of the Appellant by the High Court of Justice, Queens Bench, Divisional Commercial Court of London in 1995 along with interest thereon. The decree was not challenged and became final.
The Appellant bank filed an execution petition in an Indian Court almost 14 years after the decree was passed by the London Court for execution of the same in terms of Section 44A read with Order 21 Rule 3 of the CPC. The Indian Court dismissed the execution petition as time barred holding that Article 136 of the Limitation Act, 1963 applies and the execution petition should have been filed within 12 years of the decree being passed by the London Court. Aggrieved, the bank approached the High Court which upheld the view of the trial court.
The Appellant urged that the Limitation Act does not prescribe any period of limitation for execution of a foreign decree passed in a reciprocating country. It was also contended that since no limitation is provided under the Act, the cause of action to file an execution petition arises only when a petition is filed under Section 44A of the CPC which provides that a decree passed by a court in a reciprocating country should be treated as an Indian decree and, therefore, the limitation for 12 years provided under Article 136 of the Act applies only from that date because that is the date when the cause of action arises and the decree is treated to be an Indian decree.
Issue
What is the limitation for filing an application for execution of a foreign decree of a reciprocating country in India?

Ratio
The Supreme Court held that the limitation period for executing a decree passed by a foreign court (from reciprocating country) in India will be the limitation prescribed in the reciprocating foreign country subject to the decree being executable in terms of Section 13 of the Code of Civil Procedure.
On the question of when the period of limitation starts running, the Court contemplated two situations:
In a situation where the decree holder does not take any steps for execution of the decree during the period of limitation prescribed in the cause country for execution of decrees in that country, the right to execute the decree is lost. Hence, limitation would start running from the date the decree was passed in the cause country and the period of limitation prescribed in the forum country would not apply. In case the decree holder does not take any steps to execute the decree in the cause country within the period of limitation prescribed in the country of the cause, it cannot come to the forum country and plead a new cause of action or plead that the limitation of the forum country should apply.
In a second type of situation when a decree holder takes steps-in-aid to execute the decree in the cause country, it may happen that execution proceedings may go on for some time, and the decree may be executed, satisfied partly but not fully. In such circumstances the right to apply under Section 44A will accrue only after the execution proceedings in the cause country are finalised and the application under Section 44A can be filed within 3 years of the finalisation of the execution proceedings in the cause country as prescribed by Article 137 of the Act. The decree holder must approach the Indian court along with the certified copy of the decree and the requisite certificate within this period of 3 years.
The Supreme Court further held that the intention of the legislature was that Article 136 of the Limitation Act would be confined to decrees of Indian courts. An application for executing a foreign decree will be an application not covered under any other Article of the Limitation Act and would thus be covered under Article 137 of the Limitation Act and the applicable limitation would be 3 years. The Court further held that the period of limitation would start running from the date the decree was passed in the foreign court of a reciprocating country. However, if the decree holder first takes steps-in-aid to execute the decree in the cause country, and the decree is not fully satisfied, then he can then file a petition for execution in India within a period of 3 years from the finalisation of the execution proceedings in the cause country.