acta jure gestionis

Under the restrictive theory of State immunity, a foreign State is immune from the jurisdiction of national courts only for its sovereign acts (acta jure imperii), not for its commercial or private acts (acta jure gestionis), such as buying goods, hiring a contractor or borrowing money. The test most courts apply is the nature of the act, not its purpose: a contract to buy boots for the army is still a commercial contract.

India has no general State Immunity Act. Instead, s.86 CPC requires the consent of the Central Government before a foreign State can be sued in an Indian civil court, whatever the nature of the act.

Example

The embassy's contract with a local builder for its staff quarters was acta jure gestionis, though the builder still needed Central Government consent under s.86 CPC to sue.

In Indian law

• Section 86, Code of Civil Procedure, 1908 (suits against foreign States)

See also

acta jure imperii · par in parem non habet imperium · sovereign immunity · diplomatic immunity

Read more in the study notes

• State jurisdiction: principles and exemptions (Public International Law)