Private International Law (PIL) or Conflict of Laws (CoL)
Scope and nature of Private International Law
• Usually the cases that come up before the courts are cases that involve elements that are internal- the cause of action arises in India; the parties or either Indians or are domiciled in India; and all other elements are of India- the courts apply Indian law. • Jurisdiction of courts- the procedural laws determine the court that has jurisdiction in a matter- jurisdiction is determined on the principle that the court that renders the judgment is able to enforce it. • In most countries the law requires that the court shall not proceed in a case unless the service of summons is effected; this applies to all defendants including those who live abroad- the law also stipulates substituted service of summons (o.5 rule 20 of CPC) • In certain circumstances the court exercises jurisdiction even when the defendant is absent- in a suit whose all elements are internal, the judgment rendered in the absence of the defendant is enforceable- however, such a judgment may not be enforceable outside India. • In certain matters, the court cannot exercise jurisdiction even though the defendant is present in India. • Ordinarily a court of law will not like to pronounce a judgment which it has no power to enforce. Cases involving foreign element- • A foreigner domiciled in India leaving movable & immovable properties in India & abroad • A petition of divorce presented by an Indian domiciled in India who married a foreigner woman in a foreign country • Petition filed by a foreigner woman who married an Indian in a foreign country who left that country with the child whose custody was ordered by a foreign court to the mother in a divorce proceeding • A suit for breach of contract filed by the plaintiff domiciled in England against a French defendant domiciled in Paris for a contract entered into in the USA for supply of goods from India Another question having foreign element is enforcement of foreign judgments & awards Presence of foreign element due to: Either party may be citizen of a foreign country; or Domiciled in foreign country, and the dispute may relate to their status or their property situated in that country; or The dispute may relate to a contract between an Indian and a party living abroad; or A suit may relate to a tort committed outside India. Example I A (bride) & B (groom) living in country X get married in country Y- validity of marriage is in dispute- court may have to consider an independent question, which would affect its decision- e.g., such a marriage if the bride was under 18 when she married, and thus under Indian law, the marriage was not legal, but such marriage may be valid in country Y, where the marriage took place- though the mode of performing the marriage, though valid in country Y may not be accepted as a valid ceremony in India- in either situation if Indian law is applied, injustice may result- injustice may also result if the foreign law is applied. Questions to be answered by applying CoL: Capacity to marry (as the bride could be a minor); Is capacity determined by the law of domicile or the law of the place where the marriage was solemnised; Assuming that the test is domicile, how is domicile determined? Example II A contract entered into in India is to be performed outside India (country X)- if the contract is without consideration it is void in India(except in the cases of some exceptions); however, such a contract may be valid in country X. Which law is to be applied. If Indian court applies Indian law, injustice may result as the contract would have been valid in country X- the answer to the problem requires deciding whether the absence of consideration affects the material or essential validity of the contract; if it does, it would under our rule of conflict of laws be decided by the ‘proper law’ of the contract- determining the proper law of contract would require applying a rule of conflict of laws. In all cases involving foreign element, Indian courts will be required to decide: 1. In what circumstances the court will assume jurisdiction over the case (having foreign element) 2. If the court assumes jurisdiction, then whether it will determine the case entirely upon the Indian law, or will it apply the appropriate foreign law; and 3. In what circumstances it will recognise a foreign judgment or when it will order execution of a foreign decree. Law
Public Law Private Law
CoL : is part of Private Law to regulate disputes of private nature having a foreign element Law
Municipal Law Public International Law
Althouth CoL appears to be a third branch of law it is part of Municipal Law to regulate disputes of private nature having a foreign element. Sources of CoL: (1) Statutes; (2) Decisions of courts (3) Opinion of jurists There is no single system of CoL rules. It differs from jurisdiction to jurisdiction. English jurist Story first coined the word Private International Law (PIL) PIL a misnomer- there is no international law element- appropriately termed as ‘Conflict of Laws’. PIL/ Conflict of laws means a branch of Indian Law applied by Indian courts whenever a dispute before it involves a foreign element [Viswanathan R v Rukn-Ul Syed Abdul Wajid AIR 1963 SC 1]. Foreign element- means a fact relevant to the issues involved in the proceedings which has a geographical or other connection with a territorial unit other than the territorial unit where the court is dealing with the proceedings. ‘Conflict’ presupposes existence of two or more legal systems claiming to apply in a given situation. Whilst public international law is a law between States, and is generally not enforceable in domestic courts, conflict of laws is a branch of domestic law of countries to be followed by domestic courts. Courts voluntarily apply the CoL rules of their country to resolve the problem; while certain rules of conflict of laws are accepted in most countries, other rules differ. Public Int Law is mostly concerned with nations and not individuals and the law is uniform. CoL is concerned with individuals or individual on one side and govt on the other side and is not uniform and differs from country to country. Nomenclature- PIL- it is justified? According to jurists of USSR/Russia, who argue that in their state there is nothing like private law, and then this branch of law “does not contain substantive rules required to adjudicate the legal relations but only those which indicate the law of which state should be applied when adjudicating the facts bearing on the case”. Westlake supports PIL saying that the subject matter of this branch of law falls within the purview of international law as the courts are required to choose one of the several foreign laws, and jurisdictions of one of the several foreign courts. There is some link between PIL and Pub Int Law- there are certain rules of law which are common between them (sovereign immunity is accepted by both the laws). CoL is also considered as defective by many- this name includes within its ambit choice of law and leaves out jurisdiction; in fact there is no conflict of laws- the very objective of this branch of law is to avoid conflict- the purpose of PIL is to indicate the applicable foreign law, with a view to render justice. Basis/ foundation of CoL/ reasons for applying foreign law: Comity of nations was the earliest. Dutch jurist John Voet said that one nation applies the law of another to show its regard towards it. Another basis for the application of foreign law is that foreign law is applied because it is necessary for the determination of the rights of parties. The other basis is the need to do justice, which is the foundation of CoL- to satisfy the reasonable and legitimate expectation of the parties to a transaction or occurrence (Dicey, Morris & Collins)- if the courts apply only the domestic law, there may be the possibility for criticism of ‘forum shopping’ as the parties may tend to file the proceedings in the courts of the country where the domestic laws are favourable to them. Another reason for applying CoL is practical- if the Indian courts apply Indian law in respect of the property lying in country X, it would be difficult to apply the decision of Indian Court in country X if the decision is contrary to the law of country X. Duff CJ of Supreme Court of Canada [Stephens v Falchi (1938) SCR 354]: “The courts of Quebec administer the law of Quebec and no other law. If they apply the rules of law of any other country, it is because the law of Quebec commands them to do so in the circumstances. Whether or not the conditions are such as to require the application of rules of law of another country is a question they may decide under their own law.” Cheshire: “PIL, then, is that part of law which comes into play when the issue before the court affects some facts, events or transaction that is so closely connected with a foreign system of law as to necessitate recourse to that system”. Dicey & Morris: English PIL is that branch of law of England which “consists of rules which do not directly determine the rights and liabilities of particular persons but which determines the limit of the jurisdiction to be exercised by the English courts and also the choice of the body of law, whether domestic law of England or the law of any foreign country by reference to which English courts are to determine different matters brought before them for decision.” Subject matter of PIL: Common law and Civil law systems differ on this. Civil law countries restrict PIL to problems of CoL; matters relating to foreigners fall under a separate branch known as Law of Foreigners. Russia and Eastern European countries treat law relating to foreigners as a branch of Administrative Law. According to Szaszy: “problems connected with conflicts of jurisdiction cannot be included in PIL, either because the subject of regulating the competence of courts for exercising jurisdiction belongs to the law of civil procedure, more precisely, to the international law of civil procedure”. Although in India rules relating to jurisdiction of courts and rules relating to recognition and enforcement of foreign judgments are laid down in the CPC, yet the Indian Courts have all along considered the jurisdiction of court and rules of choice of law as falling within the ambit of PIL. In India and in the countries of common law system, the following are considered as the subject matter of PIL: (i) Rules relating to jurisdiction of courts, (ii) Rules of choice of law, and (iii) Rules relating to recognition and enforcement of foreign judgments and decrees. Jurisdiction: The law of procedure of every country lays down that in what matters which court will have jurisdiction. Indian CPC lays down that the court shall not proceed unless service of the summons is made on the defendant- this applies to all the defendants including those who live abroad- looked from this angle jurisdiction is fundamental in all suits and legal actions- however, for the following two reasons it has special significance in PIL: First, in certain circumstances the court exercises jurisdiction in a case even when the defendant is absent- in such a case judgment rendered is enforceable- but the judgment may not be recognised elsewhere. Secondly, there are certain matters in which courts cannot exercise jurisdiction even though the defendant is present, such as a petition for dissolution of marriage or in a suit relating to immovable property situated in another country. The question of jurisdiction may arise before the court in the following two circumstances: (i) When a suit is filed before the court the question arises whether the court has jurisdiction; or (ii) When the question before the court is of the recognition of a foreign judgment or its enforcement, the court may be called upon to determine whether the foreign court that rendered the judgment was a court of competent jurisdiction. Jurisdiction- normally it is territorial/ on citizens also Passports Act, 1967 Xxxx Short title and extent (1) This Act may be called the Passports Act, 1967. (2) It extends to the whole of India and applies also to citizens of India who are outside India. Code of Criminal Procedure 1973 Xxx (2) It extends to the whole of India except the State of Jammu and Kashmir: Normally rules of jurisdiction are based on the principle that the court rendering judgment must be able to enforce it- a court of law may not pronounce a judgment which it has no power to enforce- today most of the countries are unanimous that in respect of immovable property the courts where the property is situated has jurisdiction- that is not the case with movables; similarly in suits relating to personal matters there is no uniformity- thus in such matters courts of more than one country may claim jurisdiction- in most cases jurisdiction is the fundamental question without deciding which the courts cannot proceed with the cases. Choice of law: In case the court comes to the conclusion that it has jurisdiction, then in a conflict of law case the question that arises is: under which law the suit should be decided? Whether the law of the forum or whether the law of a foreign country. If the case is before Indian court, the question of choice of law is to be determined by Indian PIL. Historical developments & theories: Among the laws, PIL is the youngest. History of Eng PIL does not go beyond 200 years. Rules of Indian PIL are borrowed from Eng PIL. During Roman empire, Romans were governed by Roman Law and non-citizens by a law known as ‘law of nations’- consequently there was nothing like PIL during the Roman Empire- however the principles of domicile and lex situs was prevalent in Roman Law. Era of personal laws- after the fall of Roman Empire, from 6th to 10th century the era of personal laws prevailed- wherever a person went, he carried his law with him- two exceptions are criminal law and canon law. Era of Feudalism and City States- 11th and 12th centuries witnessed the exit of the era of personal laws and its replacement by the era of feudalism in the North of Alps and the city states of South of Alps- this ushered in the era of territorial laws- there was no place for personal laws- it did not tolerate foreign law. Era of Statutists: During 13th century there was emergence of rules of PIL- in this century, trade and commerce between city states had reached its zenith- in the interest of trade & commerce city states recognised each other’s laws- this was also the age of revival of Roman law- among the authors of this age Bartolus was the greatest and he influenced the legal thought of European countries for several centuries- with him came the Statute theory- in the middle ages ‘statute’ meant any law or custom which prevailed in any city of Italy contrary to the Italian law- originally the theory was conceived to provide solution to the conflict among the laws of Italian city states and between the laws of Italy and other city states- this theory has certain problem areas such as characterisation Modern era: In the 19th century, which is regarded as the beginning of modern era, German jurist Friedrich Carl von Savigny propounded a new theory, according to which for the entire civilised world one uniform system of PIL could be developed- rejecting the Statute theory he said that to classify law with its object in view was not correct- according to him, the object of PIL is to establish the co-relation of a legal relationship with some territorial law; every legal relationship must belong to some law and therefore the object of PIL is to find out the ‘seat’ of every legal relationship; and in the event there being a conflict between the territorial law and the law of the place to which legal relationship belongs, the latter should be applied. According to Szaszy the Great October Socialist revolution accomplished at the end of the First World War, and the socialist revolution that took place in the people’s democracies after the Second World War have changed the aspect of the world: ‘Parallel to the capitalist system founded on private property, the socialist legal system founded on the social property of the means of production came into being; accordingly, contacts of a completely new type were established as regards the relationship between capitalist and socialist states, and between socialist states themselves, and the nature of these contacts was substantially different from that of international relations which had been prevailing. English PIL: Due to several historical reasons, the rules of PIL could not develop in England before the 17th century due to the steam-rolling rule that to all the suits before the English courts, the rules of English law applied. In the 17th century the question arose whether the English law be recognised in Scotland and that whether the English law which prevented foreigners from becoming owners of land would apply to Scots also. In Cavlin’s case [(1608) 7 Rep. 2a] the latter was answered in negative- in some cases English courts showed their willingness to take evidence of foreign law; in 17th century English courts also showed their willingness to recognise foreign judgments; a stage was reached when English courts were, by social necessity, compelled to take cognizance of PIL situations. In the 18th century, British Empire reached the dimension ‘sun never sets’- the constituents of the empire had different sets of laws- in Robinson v Bland [(1760) 2 Burr. 1077] Mansfield LJ said “The general rule.... is that the place where the contract is made, and not the place where action is brought, is to be considered in expounding and enforcing a contract. But this rule admits of an exception when the parties at the time of making of the contract had a view to a different kingdom.” Then Mansfield LJ propounded the notion of what is today known as ‘proper law of contract.’ In Mostyn v Gabrigos [(1774) Cowp. 161] he propounded rules governing foreign tort. As the years rolled by, gradually rules of PIL emerged such as contracts, torts, legitimacy etc. In the words of Cheshire the 18th century may be termed as ‘the embryonic period’ of PIL- a period which extended to the middle of 19th century- 19th century can take the credit for a period in which rules of PIL start taking shape. Indian PIL: With the establishment of Mughal rule in many matters rules of Muslim law came to be applicable; in most matters, if both the parties were Hindus Hindu law was applied and if both the parties were Muslims, Muslim law was applied; in the entire family matters Hindus were governed by Hindu law and Muslims were governed by Muslim law- thus emerged the era of personal laws in India. During British rule, from its inception to end, various communities were governed by their personal law in personal matters; occasions for conflicts were low as inter- community relations were not possible. Inter-community marriages could be performed in civil marriage form under the Special Marriage Acts, 1872; 1928; once the marriage was performed under the Spl Marriage Acts, the parties ceased to be governed in most matters by the law of their respective community- succession governed by the Indian Succession Act, 1925; the conflicts are thus avoided; the position is same even now- a Hindu living in any area is governed by the personal Hindu law prevailing in that area- thus a Hindu living in Bengal is governed by Dayabhaga school and will continue to be governed by that school wherever he goes. Even after Independence we follow rules of British PIL. Unification of PIL: The need for PIL arises because the internal laws differ from country to country. If the internal laws of various countries lay down uniform rules, probably there will not be any need for PIL. Difference is not only in the internal laws but also in the PIL, on account of which conflicting decisions are pronounced by courts of various jurisdiction on same/ similar set of facts- thus there is a need for unification of rules of PIL. There are two modes for unification: (a) Unification of the internal laws of countries; and (b) Unification of the rules of PIL. Berne Convention, 1886- under this convention an international union for the protection of authors over their literary and artistic works was formed. After First World War an International Institute for the Unification of Private Law was established at Rome- this Institute has achieved some success in the field of unification of civil laws. Warsaw Convention of 1929 amended by the Hague Convention of 1955- very important convention that provides for uniform rules relating to carriage of goods and persons by air. Brussels Convention of 1922-23 unification of rules relating to carriage of goods and persons by sea came into existence. Geneva Convention on International Carriage of Goods by Road 1956 was on the same lines relating to carriage by road. In 1964 a convention that establishes uniform set of international sales of goods and on the formation of contracts for such sales was formulated by the Rome Institute in conjunction with the Hague Conference. There have been successful efforts on regional level. The Scandinavian countries (Sweden, Norway, Denmark, Finland and Iceland) in 1929-33 entered into a number of Conventions to unify the rules of PIL relating to marriage, adoption and guardianship. In 1951 a permanent Bureau of Hague Conference at the Hague was constituted towards unification of PIL at global level. This Bureau works under the general direction of the Standing Governmental Commission of the Netherlands which was established by a Royal Decree in 1897 with the object of promoting codification of PIL. This Bureau has done a commendable job. The Conventions made under its aegis are: Convention on Civil Procedure, 1954 Convention on Uniform Law of International Sale of Goods and Uniform law on the Formation of Contract for International Sale of Goods, 1964 Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial matters Convention on Choice of Court, 1965 Convention on Jurisdiction, Applicable Law and Recognition of Decrees Relating to Adoptions, 1965 Theories of PIL: 1. Statute theory 2. International theory 3. Territorial theory and the theory of acquired rights 4. Local law theory, and 5. Theory of justice Statute theory: A product of 13th century Italian theories- propounded by Bartolus- a ‘statute’ was a declaratory restatement of older customary law of the city and its commercial community; they contained new rules also. Considering the object of law, statutes were classified under: (i) statutes concerning person (statuta personalia) and (ii) statutes concerning things (statuta realia). Bartolus added another i.e., mixed statutes (statuta mixta) concerning acts such as formation of a contract. Statutes concerning things were essentially territorial; personal statutes applied to persons domiciled within the territories of the state. Mixed statutes applied to all acts done in the country enacting such statutes, even when litigation was filed in another jurisdiction. Apparently the theory appears to be simple; but in its practical application presents great difficulties- most difficult determination is characterising them as personal, real or mixed. In the 16th century France, scholars undertook to develop the theory further- they tried to mould the theory to suit their social conditions- arch protagonists are Charles Dumoulin and Bertrand D’ Argentre- Dumoulin emphasised volition of the parties as the deciding factor of law of contract- according to him whenever there is a doubt whether the matter is personal or real or mixed it should be treated as real. In the 17th century Dutch jurists made strides into the theory- notable was Frisian Ulric Huber; he propounded: (i) The laws of each state operate within its territory and are applicable to all its subjects, but beyond its territory they have no operative force; (ii) Laws of a state are applicable to all those persons who are within the realm irrespective of the fact whether they are permanent residents or casual visitors; (iii) By comity every sovereign accepts that a law which had come into operation in its country of origin shall retain its force where everywhere, provided it does not cause any prejudice to the subjects of the sovereign by whom its recognition is sought. The first two principles embody the doctrine of territoriality; under the third principle an extraterritorial effect is given to the law by application of comitas gentium- comity and the pressure of international commerce require that acts and transactions entered into validly in one jurisdiction should be upheld in all other jurisdictions. The contribution of Dutch jurists to PIL is considerable- they laid down the rule, which is valid till today, that every state was free to lay down its own rules of PIL- in reality no state would exercise this freedom arbitrarily; in fact, each state applies foreign law by comity. In 17th and 18th centuries the statute theory was developed by French & German jurists- political opinions and contemporary events brought about many modifications in this theory- doctrines of Grotius in Pub Int law contributed largely- although the theory was propounded from time to time by various jurists, two things are common to all the statutists: (a) they all examine the individual legal rule itself and consider the question whether it is restricted in its application to the state which enacted it, or whether it is equally valid extraterritorially; and (b) they all try to evolve principles which are meant to apply super-nationally and super-locally. International theory: Savigny is the founder- in 1849 in eighth volume of his work System of Modern Law he rejected statute theory and territorial theory- according to him, solution to the problem did not lie in classifying the laws on the basis of their object, but in the ability to find out the seat of each legal relationship, as each legal relationship has its natural seat in some local law; therefore, even if the law of the forum is the law of the place which is the seat of legal relationship, it will be the latter which will be applicable- he maintained that in a case having foreign element ‘the same legal relations have to expect the same decision whether the judgment is pronounced in this state or that state’- he said that it is essential to keep in mind that there exists an international community of nations- according to him the application of foreign law is not based on comity but on the benefit that it brings to all concerned. Main postulates of Savigny: Every legal relation has a seat The task of the jurist is to find this (he developed many rules to enable one to find out the seat; he said that seat of a thing was the place where it was situated; the seat of the capacity of a person was the place where he was domiciled). Other protagonists of International theory: Von Bar of Germany; Westlake of England; Wharton of US; Jitta of Holland- according to Zitelmann (Germany), PIL is a complete system capable of resolving every possible case of conflict. Criticisms: the important criticism is that it starts on the assumption that there is uniformity in the laws of the countries on characterisation, while in fact it is not so; for example breach of marriage promise is regarded as breach of contract in some countries, while it is regarded as tort in some countries- in such a situation it is difficult to find out the natural seat of the legal relationship; in contemporary world there are more than one systems, of them important one are common law and civil law. Since the word ‘seat’ is vague, Gierke, who adopts Savigny substituted with ‘centre of gravity’- the merit of the theory lies, as Cheshire says, “in the light of all relevant circumstances, they attempt to decide each case according to the legal system to which it seems most naturally to belong. Territorial theory or the theory of Acquired Rights: This theory originated with Dutch jurist Huber and elaborated in England by Dicey and in US by Beale. It is based on the principle of territoriality- a judge cannot directly recognise or sanction foreign laws nor can he directly enforce foreign judgments for it is his own territorial law which must exclusively govern all cases that require his decision; what the judge does is to protect rights that have already been acquired by a claimant under a foreign law or a foreign judgment. According to this theory, courts of the country apply foreign law only to the extent they are permitted to do so by the sovereign- this aspect makes it resemble the theory of comity- by some jurists this theory was also named theory of acquired rights- according to the protagonists, under PIL courts do not apply foreign law or enforce foreign judgments, but they merely recognise and enforce the rights acquired under foreign law- thus foreign acquired rights are protected and given effect to, and not the foreign law- according to Dicey: “English judges never in strictness enforce the law of any country but their own and when they are popularly said to enforce foreign law, what they enforce is not a foreign law, but a right acquired under the law of a foreign country”. The criticism of this theory by the French jurist P. Armingjon can be summarised as follows: (1) The theory of acquired rights is nothing but the invocation of a fiction which is unnecessary and useless. (2) The theory begs the question and produces a vicious circle. (3) It is possible that under the rules of choice of law of a country it may happen that right which is unrecognised or repudiated by a foreign law may be enforced by the court of the forum- for example under the Pakistani law a Muslim wife is not entitled to maintenance after divorce; yet the English courts have power to pass a maintenance order against a Pakistani domiciled husband residing in England who had divorced his wife. According to Cheshire: “the theory of vested rights is analytically defective and inadequate as an explanation of the pattern of rules of PIL. “ Local Law theory: It is an offset of jurists of the realist school of jurisprudence- it is an extreme operation of the doctrine of territoriality- according to Walter Wheeler Cook, the American propounder, - no court applies any other law but its own, nor enforces any right or obligation other than that created by its own- the propounders of this theory maintain that when the courts of forum have to decide a case having foreign elements, they always apply their own law, though in doing so they adopt and enforce as their own law a rule of decision identical, or at least highly similar not identical, in scope with a rule of decision found in the system of law in force in another state or country with which some or all the foreign elements are connected. The forum enforces not a foreign right but a right created by its own law. This theory is criticised as it affords no basis for the systematic development of PIL. Theory of Justice: This theory is pragmatic and ethical- according to Graveson its premises are threefold: sociological, ethical and legal- sociologically it rests on the international need for fair treatment in the private transactions of individuals; ethically it reflects the traditions and training of English lawyers, judges and legislators as expounders of justice of their day and age; and legally it rests on the terms of the judges’ oath. He admits that this theory is not a perfectly valid theory in every case, for one cannot explain in terms of absolutes an empirically developed system like our own. No one theory can possibly answer the theoretical bases of PIL- in the 12th century the principle of territoriality of laws came into existence and in the entire Italy the doctrine had its sway; in the 20th century the same the theory was propounded in different garbs- Commonly used expressions: Lex actus/ lex loci actus: the law of the place where the act was done or the transaction was completed lex causae: the law that governs the dispute (the law identified in the choice of law stage of the conflict process as the one to be applied to determine the case) Lex contractus/ Lex loci contractus: the law of the place where contract was made Lex delicti/ Lex loci delicti: the law of the place where the tort or other wrong was committed Lex domicilii : the law in force in the country or place where the person is domiciled Lex fori : the law of the forum, i.e., the law in force in the court hearing the dispute Lex loci celebrationis : the law of the place where the marriage is performed lex loci solutionis : the law of the place where the contract was to be performed or the debt paid lex monetae : the law of the country in whose currency a debt or monetary obligation is expressed lex patriae : the law of the nationality of the person lex rei situs/ lex situs : the law of the place where the property is situated Propositus : the person whose rights and obligations are considered