Foreign governments and entities to lose automatic immunity with new amendment

03 Jul 2007

1
New Delhi: India will soon enact amendments in the State Immunities Act in order to remove the automatic immunity issued to the foreign governments or their undertakings, such as airlines etc in case of a criminal or a civil complaint.

The new law proposes to amend Section 86 of the Civil Procedure Code (CPC), removing the mandatory permission that is required from the government, for filing a civil suit in Indian courts against any foreign government or their undertakings.

The External Affairs Ministry is drafting a legislation that is based on the 2004 United Nations convention on jurisdictional immunities to States and their properties.

India became a signatory to the convention in January.

Once the new law is enacted passengers can sue foreign government-run airlines for negligence of services, loss of baggage etc without first having to seek permission to prosecute defaulters.

The move by India is widely perceived to be sparked off by the recent US Supreme Court ruling in favour of New York City that now allows it to sue foreign governments for more than $100 million in back property taxes. India and Mongolia had been the targets of New York City's drive to recover arrears.

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