Points of law

A bankruptcy would entail a by no means insubstantial infringement of the independence of the sending State vis-à-vis the receiving State. Therefore the sending State can, under the generally recognised rules of international law, invoke its immunity from execution in proceedings before the court in the receiving State which has been asked to give judgment on a petition for the sending State to be declared bankrupt.

Summary of the case

The Hague Sub-District Court ordered the Republic of Zaire in absentia to pay arrears of wages to Duclaux, who had worked as a secretary at the Embassy of Zaire in The Hague. When the Embassy failed to pay her wages, Duclaux petitioned the District Court of The Hague to declare the Republic of Zaire bankrupt to enable her to collect the debt, claiming that the Republic was also failing to pay other recoverable debts and therefore was in a position that it had ceased to pay its debts. The District Court rejected the Republic of Zaire's claim that it was immune from jurisdiction and execution, and declared the Republic of Zaire bankrupt. It furthermore instructed the trustee in bankruptcy to open letters and telegrams from the bankrupt.

Sources

English summary: NYIL 1989, p. 296-300

Additional information (explanations, notes, etc.)

An English summary of the judgment of the District Court can also be found in NYIL 1989, p. 296-300.