FULL FAITH AND CREDIT

The several States in the USA, before the creation of the Federation, were sovereign
entities and each was thus free to ignore obligations created under the laws, or by the
judicial proceedings of the other. It was, therefore, necessary to evolve a mechanism by
which rights legally established in one State could be given nation-wide application, and
so there is the Full Faith and Credit clause in the US Constitution. On the same model,
the Indian Constitution has Article 261, Since under Article 245(1), the jurisdiction of
each State is confined to its own territory, it could possibly have been argued that the
acts and records of one State could not be recognised in another State. Article 261
removes any such difficulty. Article 261(1) lays down that “full faith and credit” is to be
given throughout the territory of India to ‘public acts’, records and judicial proceedings of
the Union and the States.
Article 261 is prospective and not retrospective. This provision does not apply to
decrees passed before the coming into force of the Constitution. The term ‘public acts’
in this Article refers not only to statutes but to all other executive and legislative acts.
The clause, however, does not envisage that a greater effect be given to the public act
of one State in another State than it is entitled to in the ‘home’ State itself.
According to Article 261(2), the manner in which, and the conditions under which, the
acts, records and proceedings referred to in Article 261(1) are to be proved, and the
effect thereof determined shall be ‘as provided by law made by Parliament’. Article
261(2) thus empowers Parliament, to lay down by law:
(a) the mode of proof, as well as,
(b) the effect of acts and proceedings of one State in another State.
Under Article 261(3), a final judgment or order delivered or passed by a civil court in any
part of India is capable of execution anywhere within India according to law. This is a
constitutional provision which enjoins that a decree shall be executable in any part of
the territory of India according to law. The words ‘final judgment’ in this clause include
‘decrees’ also. The clause applies to civil and not to criminal courts. A decree passed by
a civil court in any other State is executable in any other State ‘according to law’ and the
word ‘law’ here means ‘procedural’ law relating to the execution of the decrees, eg the
law of limitation. It does not refer to the merits of the decision which cannot be re-
opened in another court.
The Bombay High Court passed a decree on 29 June 1960. Goa became a part of India
and was made a Union Territory in 1962. The Code of Civil Procedure was made
applicable to Goa in 1965. The Supreme Court ruled that as the decree was passed by
the Bombay High Court after the Constitution came into force, Article 261(3) would
apply to the decree in question. Further, this Article would also apply to Goa because at
the time of its execution, Goa had become a part of India. The decree would be
executed according to the CPC which became applicable at the time of the execution of
the decree.