Nagarmull vs.

Binalbagan

G.R. No. L-22470, May 28, 1970

FACTS:

Soorajmull Nagarmull sued Binalbagan-Isabela Sugar Company, Inc. for the

enforcement of the Tribunal Arbitration ordering the latter to pay the increased export
taxes imposed by the Indian Government on the shipments of jute sacks. Binalbagan
refused to pay claiming that they are not bound by the decision of the Bengal Chamber
of Commerce and consequently not obligated to pay the claim in question.

ISSUE:

Whether the foreign judgment can be enforced in the Philippines

RULING:

NO. While under the provisions of Section 50of Rule 39, Rules of Court, a
judgment for a sum of money rendered by a foreign court is presumptive evidence of a
right as between the parties and their successors in interest by a subsequent title, but
when suit for its enforcement is brought in a Philippine court, said judgment may be
repelled by evidence of clear mistake of law.

Upon the facts of record, We are constrained to hold thatthe decision sought to be
enforced was rendered upon a"clear mistake of law" and because of that it
makesappellant—an innocent party—suffer the consequences ofthe default or breach of
contract committed by appellee.