Points of law

1) Under customary international law the bank account of a diplomatic mission used for defraying the expenses of running the mission, enjoys immunity from execution in the receiving State;

2) The State Immunity Act should be construed so far as possible to accord with the requirements of customary international law;

3) The bank account of a foreign embassy in the UK used for the day to day running of that embassy is used both for the supply of goods and services and for sovereign purposes. Since the account is indivisible, it is not property "in use or intended for use for commercial purposes" within section 13(4) of the State Immunity Act, and is therefore immune from measures of execution;

4) If an embassy bank account is earmarked by the foreign State solely for commercial transactions, it will not be immune from measures of execution. However it is for the judgment creditor to prove this, and a certificate from the head of the diplomatic mission that the account is not in use or intended for use for commercial purposes is sufficient evidence of that fact, unless the contrary is proved.

Summary of the case

n/a

Sources

[1984] 2 All ER 6

Additional information (explanations, notes, etc.)

n/a