Section 86 of CPC : Section 86: Suits against foreign Rulers, Ambassadors and Envoys.

Explanation using Example

Example 1:

Scenario: A tenant dispute involving a foreign embassy.

Situation: Mr. Sharma is a tenant in a property owned by the Embassy of Country X in New Delhi. The embassy decides to evict Mr. Sharma without following the due process of law.

Application of the Act:

• Mr. Sharma can file a suit against the Embassy of Country X without needing the consent of the Central Government because he is a tenant of immovable property held by the foreign state.
• The court will hear the case and decide whether the eviction was lawful.

Example 2:

Scenario: A business dispute involving a foreign company.

Situation: ABC Pvt. Ltd., an Indian company, enters into a contract with a state-owned enterprise from Country Y. The foreign enterprise fails to deliver the goods as per the contract, causing significant financial loss to ABC Pvt. Ltd.

Application of the Act:

• ABC Pvt. Ltd. wants to sue the state-owned enterprise of Country Y in an Indian court.
• ABC Pvt. Ltd. must first obtain written consent from the Central Government, certified by a Secretary to the Government.
• The Central Government will consider whether Country Y has waived its immunity, trades within the local jurisdiction, or has any other relevant connection before granting consent.
• If consent is granted, ABC Pvt. Ltd. can proceed with the lawsuit in the specified court.

Example 3:

Scenario: Execution of a decree against a foreign state.

Situation: An Indian court has passed a decree in favor of Mr. Verma against the Government of Country Z for a contractual dispute. Mr. Verma now wants to execute the decree and recover the awarded amount.

Application of the Act:

• Mr. Verma cannot execute the decree against the property of the Government of Country Z without the written consent of the Central Government.
• Mr. Verma must apply to the Central Government for consent to execute the decree.
• The Central Government will review the case and decide whether to grant consent based on the circumstances.
• If consent is granted, Mr. Verma can proceed with the execution of the decree.

Example 4:

Scenario: Immunity of a foreign ambassador.

Situation: An Ambassador of Country W is involved in a car accident in India, causing injury to a pedestrian. The pedestrian wants to file a lawsuit for damages.

Application of the Act:

• The pedestrian cannot sue the Ambassador of Country W without the written consent of the Central Government.
• The Central Government will consider whether the Ambassador has waived immunity or if there are other grounds to grant consent.
• If consent is not granted, the lawsuit cannot proceed against the Ambassador.
• Additionally, the Ambassador cannot be arrested under this Code.

Example 5:

Scenario: A foreign state trading within local jurisdiction.

Situation: The Government of Country V operates a chain of retail stores in India. One of the stores breaches a contract with an Indian supplier, causing financial loss.

Application of the Act:

• The Indian supplier wants to sue the Government of Country V for breach of contract.
• The supplier must obtain written consent from the Central Government to sue the foreign state.
• The Central Government will consider that the Government of Country V is trading within the local jurisdiction and may grant consent for the lawsuit.
• If consent is granted, the supplier can proceed with the lawsuit in the specified court.