Context: The U.S. Securities and Exchange Commission (SEC) has sought assistance from the Union Law Ministry of India under the Hague Service Convention to serve summons to Gautam Adani and his associates in a securities fraud case.
Relevance of the Topic:Prelims: Key facts about SEC; Hague Service Convention
About Hague Service Convention
- The Hague Service Convention is formally known as the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (1965).
- It is an international treaty that standardises the process of serving legal documents across borders.
Key features of the Hague Service Convention
- Established in 1965 to standardise the service of judicial and extrajudicial documents across borders.
- Purpose:
- To facilitate the service of judicial and extrajudicial documents in civil and commercial matters between signatory countries.
- To ensure timely and actual notice of legal proceedings for defendants in foreign jurisdictions.
- Central Authority: Each member country designates a Central Authority to receive and process service requests.
- It has been signed by 84 states, including India and the U.S.
- It is applicable only when both the sending and receiving countries are signatories.
- Modes of transmission vary by country but generally include:
- Primary method: Service through the designated Central Authority.
- Alternative channels: Diplomatic/consular service, postal service (if permitted), direct service by judicial officers, or direct contact between government authorities.
Service of Process in India
- India acceded to the Convention on November 23, 2006, with expressly opposing all alternative service methods under Article 10.
- India opposes all alternative service methods, including postal service, except for nationals of the requesting country.
- Service must be done exclusively through the Ministry of Law and Justice (India’s Central Authority).
- Requests must be in English or accompanied by an English translation.
- India’s Central Authority can reject a service request under Article 13 if it compromises sovereignty or security but not based on exclusive jurisdiction claims.
- The service process typically takes 6 to 8 months and is treated as an Indian court summons under Section 29(c) of the Code of Civil Procedure, 1908.
Judicial Precedents on Alternative Service Methods
- Federal Trade Commission v. PCCare247 Inc. (2013) (U.S.):
- It allowed service in India via Facebook and email, arguing these methods were not explicitly objected to under Article 10.
- Punjab National Bank (International) Ltd. v. Boris Shipping Ltd. & Ors. (2019) (UK):
- Rejected alternative service methods, ruling that service must comply with India’s designated procedure under the Convention.
- Rockefeller Technology Investments v. Changzhou SinoType Technology Company (2020) (U.S.):
- Ruled that contractually agreed service methods can override a state’s objections under Article 10.
Default judgments under the Convention
- A default judgment may be issued under the Convention if a foreign government refuses to cooperate in serving summons on a defendant residing within its jurisdiction.
- Article 15 allows a default judgment if:
- The document was transmitted using a Convention-approved method.
- At least six months have passed without service confirmation.
- The court deems that all reasonable efforts were made to obtain proof of service.
- India allows default judgments even without a service certificate, provided Article 15 conditions are met.
- Duong v. DDG BIM Services LLC (2023) (U.S.): The U.S. court acknowledged Article 15 as a safety valve, allowing default judgment when India’s Central Authority fails to process service requests efficiently.