How is a suit by Aliens and foreign States instituted?

Question: How is a suit by Aliens and foreign States instituted?

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Answer

These procedures for the suit by aliens and foreign government, etc. are dealt with under Part IV of the Code. Part IV can be divided into three parts for the purpose of brevity:

1. Suit by Aliens
2. Suit by and against Foreign States
3. Suits by and against Foreign Rules and Ambassadors.

The article is accordingly divided into three parts, each part dealing with one aspect of the suit.

1. Suit by Aliens

Section 83 of the CPC deals with the aspects and procedures for suits filed by aliens. The term alien is not defined either under the Section or anywhere under the code. However, in general, a person is alien to a country if s/he is not a citizen of that country and is residing in that country either for a certain purpose or as a refugee. Under Section 83, an alien has been classified into alien friends and alien enemies residing in India and alien enemies residing outside India.

Section 83 goes to explain what is an alien enemy residing outside India but the other two are left for interpretation. According to the explanation to Section 83, if a person resides and carries on business in a foreign country that is at war or in a situation of conflict that may result in war, such persons are called alien enemies residing in foreign countries. Further, it is vital that the person carries on business in the enemy country without license and permission from the Central government.

Now, from this explanation, it is lenient to define the other two. An alien enemy residing in India is a person who resides and carries on business in India either with the license or without the license from the central government but is a citizen of a foreign country with which India is at war or in a situation of war.

Similarly, an alien friend is a person residing and carrying on business in India and is a citizen of a foreign country with which India is an ally or in friendly relations. According to Section 83, an alien friend and an alien enemy residing and carrying on business in India with the license from the authorities shall have the right to sue in Indian courts for any infringement of rights.

Notwithstanding any infringement of rights, an alien enemy residing and carrying on business in India without permission and an alien enemy residing and carrying on business outside India shall not have the right to sue in Indian courts. The sine qua non for exercising the right to sue by aliens is that the court must be competent to try the case. It must have the requisite territorial and pecuniary jurisdiction.

2. Suits By and Against Foreign States

To understand this concept, let us take the case of LICRA v. Yahoo Inc.[1] In this case, Yahoo Inc. was selling Nazi memorabilia on its online shopping website. The products were banned to be sold in France and Yahoo France had already removed all such products from its website.

However, orders were placed and memorabilia was purchased from Yahoo Inc. (Yahoo in the US) by the people of France. Against this action, France filed a suit in the US circuit court for an order of permanent injunction against Yahoo selling memorabilia in France and for damages. This is an example of a suit by a foreign State which is filed for any act done against the State as a whole or any of its people.

In India, Section 84 of the CPC allows a foreign State to sue in Indian courts and Section 86 allows any entity to sue a foreign State in Indian courts. Similar to the provisions related to suit by aliens, a suit by or against the foreign state can only be filed before a court of competent jurisdiction territorially and pecuniary. A suit by a foreign State can be filed for the following purposes.

• Enforce the Rights of Ruler: A suit can be filed by a foreign State to enforce the private rights of a ruler of the foreign State which are bestowed upon him by the virtue of his post. It means that if the ruler of the foreign State has created any right in his favour by any agreement or by law, and such right is infringed by the act of an Indian citizen or the State, a suit can be filed to restore the right of the ruler.
• Enforce the Rights of Public Officers: The doctrine of parens patriae holds the State in the position of a parent of subjects under it. Thus, it is the responsibility of the State to ensure that the rights of its officers are not violated or infringed by the actions of any other State or its citizens. Hence, Section 84 vests power in the hands of the foreign State to sue in Indian courts to enforce the rights vested in their officers.

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