Lex situs

Having regard to the peculiar conditions prevailing in India and Pakistan and in view of the absence of reciprocity between the two countries the unqualified application of the English rule of equal distribution of Indian assets among all credits Pakistani and Indian will not be reasonable or equitable. Hence, the reasonable method is to lessen the rigour of the rule which requires the giving of equal opportunities to the foreign and the Indian creditors in an Indian liquidator and allow only such Pakistani creditors to prove their claim in the winding-up whose debts are properly recoverable in the Union of India according to the principles of International law of “lex situs”or the “proper law of the contract.” [AIR 1958 Cal 762].