- (1.) THE defendant is the appellant in this appeal. The suit in question was filed by the respondent, for a decree for Rs. 2,40,000/ - alleging that the respondent had purchased diverse spare -parts and accessories from the appellant, which were found to be damaged. The appellant is a Company incorporated under the appropriate laws of the West Germany and is carrying on' its business in West Germany as also at Calcutta.
(2.) AN objection was taken at the initial stage on behalf of the appellant that it was a department and/or agent and/or instrumentality of the Government of German Democratic Republic, which is recognised as a sovereign foreign State and as such the suit in question cannot be entertained against the appellant without prior consent of the Central Government as required by section 86 of the Code of Civil Procedure (hereinafter referred to as ''the Code"). The same plea was taken even on behalf of the carrier, which also belongs to and is owned by the German Democratic Republic. In support of the stand and in order to attract the bar of section 86 of the Code, the appellant produced the certificate dated 18.9.1981 granted by the Counsel General of the German Democratic Republic at Bombay saying: "VEB Deutfracht Seereederei Rostock, abbreviated as D.S.R. commonly known as D.S.R. Lines constitutes a department of the Government of the German Democratic Republic exercising the rights of a legal entity." The Constitution of the German Democratic Republic was also produced. Reference was made to Article 12 of the said Constitution which says: "Mineral resources, mines, power stations, barrages and large bodies of water, the natural resources of the continental shelf, the larger industrial enterprises, banks and insurance companies nationally -owned farms, traffic routes, the means of transport of the railways, ocean shipping and civil aviation, post and telecommunication installations, are nationally -owned property, private ownership thereof is inadmissible."
(3.) IN respect of the carrier also, the Counsel General of the German Democratic Republic at Bombay granted the certificate saying that the said vessel' 'is owned by the people of the German Democratic Republic and, hence, owned by the State. ";