Whether foreign rule of limitation shall be a defence to a suit instituted in India, on a contract entered into, in a foreign country?
No foreign rule of limitation shall be a defence to a suit instituted in India on a contract entered into with a foreign country, unless the foreign rule has extinguished the contract (i.e., has extinguished the obligation of the right itself) and parties were domiciled in such country during the prescribed period by such rule.It is a general rule of international law that a contract with reference to its form, validity, interpretation and the rights and liabilities of the parties to it, is governed by the lex loci contracts the law of the place where the contract is made) while all matters of procedure are governed only by lex fori (law of the forum in which the action is brought). Questions of limitation of actions are governed by the lex…