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Context:

The U.S. Securities and Exchange Commission (SEC) has sought assistance from the Ministry of Law and Justice under the Hague Convention to serve legal summons on Gautam Adani and his nephew Sagar Adani in a securities and wire fraud case.

About the Hague Service Convention

The Hague Service Convention (formally, the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, 1965) is a multilateral treaty adopted to standardize cross-border service of legal documents.

It ensures defendants in foreign jurisdictions receive timely notice of legal proceedings.

Key features

• Applicability: Applies only between signatory states (84 countries, including India and the U.S.).
• Central Authorities: Each signatory designates a central authority (e.g., India’s Ministry of Law and Justice) to process requests.
• Service Methods: Primarily through central authorities, but alternative methods (e.g., postal service, diplomatic channels) are allowed unless a state objects.

How Does Service Work in India?

India acceded to the Convention in 2006 with reservations under Article 10, opposing alternative service methods (e.g., email, social media).

Procedural Steps

• Exclusive Role of the Law Ministry: Service requests must go through India’s Ministry of Law and Justice. Direct service by foreign entities (e.g., U.S. courts) is prohibited.
• Rejection Grounds: The Ministry can reject requests if sovereignty/security is threatened (Article 13) but cannot refuse based on domestic law differences (Article 29).
• Service Process: If approved, the Ministry serves the defendant under India’s Code of Civil Procedure, 1908. Acknowledgment is sent to the requesting party, typically taking 6–8 months.

The SEC’s Request in the Adani Case

The SEC informed a New York court that it invoked Article 5(a) of the Convention to request India’s Law Ministry to serve summons on Gautam Adani and Sagar Adani.

The duo faces charges of bribing Indian officials to secure solar projects and defrauding U.S. investors.

The SEC also noted it is exploring alternative methods under the U.S. Federal Rule of Civil Procedure 4(f), though India’s Article 10 reservation limits these options.

Default Judgment Under the Convention

If Indian Law Ministry fails to serve the summons, the U.S. court may issue a default judgment under Article 15 if:

• The document was transmitted via a Convention method.
• At least six months have elapsed since transmission.
• No service certificate was received despite efforts.
• India explicitly permits default judgments even without a service certificate, provided Article 15 conditions are met.

Source:

THE HINDU

https://t.me/+hJqMV1O0se03Njk9