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REGISTERED No. D. (D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No 4] NEW DELHI, THURSDAY, MARCH 17, 1983/PHALGUNA 26, 1904

Separate paging is given to this Part in order that it may be field

as a separate compilation

LOK SABHA

The following Bill was introduced in Lok Sabha on the 17th March,

1983: —

BILL NO. 26 OF 1983

A Bill to implement the international agreement for the establishment and

operation of the African Development Bank and for matters connect-

ed therewith.

BE it enacted by Parliament in the Thirty-fourth Year of the Republic

of India as follows: —

1. (1) This Act may be called the African Development Bank Act,

1983.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government

Short title, extent and com- mence. ment.

may, by notification in the Official Gazette, appoint.

Defini- tions.

2. In this Act, unless the context otherwise requires,—

(a) "Agreement" means the agreement for the establishment of

the African Development Bank;

(b) "Bank" means the African Development Bank established

under the Agreement.

Payments to Bank.

3. (1) There shall be paid out of the Consolidated Fund of India,

after due appropriation made by Parliament by law in this behalf, all

such sums as may, from time to time, be required for the purpose of

paying,—

(a) the subscriptions payable by the Central Government to the

Bank under Article 6, 7, 10 and 21 of the Agreement;

(1)

(b) any sums payable by the Central Government to the Bank

under Article 28 of the Agreement.

(2) The Central Government may, if it thinksfitso ttf do, create and issue to the Bank, in such form as it thinks fit, anyj non-interest

bearing and non-negotiable notes or other obligations.

4. The Reserve Bank of India shall be the depository of the Indian

currency holdings of the Bank.

Reserve Bank to be depo- sitory lor Bank.

5. (1) Notwithstanding anything to the contrary contained in any other law, the provisions of tlie Agreement set out in the Schedule shall have the force of law in India:

Provided that nothing in Article 57 of the Agreement shall be con-

strued as—

i

(a) entitling the Bank to import into India goods free of any duty of customs without any restriction on their subsequent sale therein; or

(b) conferring on the Bank any exemption from duties or

taxes, which form part of the price of goods sold; or

(c) conferring on the Bank any exemption from duties or taxes

which are in fact no more than charges for services rendered.

Confer- ment at status and cer- tain Im- munities, exemp- tions and privile- ges on Bank and confer- ment of certain, immuni- ties, exemp- tJons and privi- leges on Its

(2) The Central Government may, by notification in the Official Gazette, amend the Schedule in conformity with any amendments, duly made and adopted, of the provisions of the Agreement set out therein.

officers and em- ployees.

6. The Central Government may, by notification in the Official

Gazette, make rules for carrying out the purposes of this Act.

Power to make ruJes.

Notifi- cations issued under section. 5 and rules made under section Gtobe laid before Parlia- ment.

7. Every notification issued under sub-section (2) of section 5 and every rule made under section 6 shall be laid, as soon as may be after it is issued or made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or, as the case may be, in the rule or both Houses agree that the notification or rule should not be issued or made, the notifica- tion or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modifica- tion or annulment shall be without prejudice to the validity of anything previously done under that notification or rule.

THE SCHEDULE

(See section 5)

PROVISIONS OF THE AGREEMENT WHICH SHALL HAVE FORCE

OF LAW

AGREEMENT ESTABLISHING THE AFRICAN DEVELOPMENT BANK

CHAPTER VII

STATUS, IMMUNITIES, EXEMPTIONS AND PRIVILEGES

ARTICLE 50

STATUS

To enable it to fulfil its purpose and the functions with which it is entrusted, the Bank shall possess full international personality. To those ends, it may enter into agreements with members, non-member States and other international organizations. To the same ends, the status, immunities, eMemptions and privileges set forth in this Chap+er shall be accorded to the Bank in the territory of each member.

ARTICLE 51

STATUS TN MEMPRU COUNTRIES

In the territory of each member the Bank shall possess full juridical

personality and, in particular, full capacity:

(a) to contract;

(b) to acquire and dispose of immovable and movable property;

and

(c) to institute legal proceedings.

ARTICLE 52

JUDICIAL PROCEEDINGS

1. The Bank shall enjoy immvnity from every form of legal process except in cases arising out of the exercise of its borrowing powers when it may be sued only in a court nf competent jurisdiction in the territory of a member in which the Bank has its principal office, or in the territory of a member or non-member St;ite where it has appointed an agent for the purpose of accepting service or notice of process or has issued or guaranteed securities. No actions shall, however, be brought by members or persons acting for or deriving claims from members.

2. The property ?nd assets of the Bank shall, wherever located and by whomsoever held, be immune from nil forma of seizure, attachment, ?r execution before the delivery of nml judgment against the Bank.

ARTICLE 53

IMMUNITY OF ASSETS AWD ARCHIVES

2. The archives of the Bank and, in general, all documents belonging to it, or held by it, shall be inviolable, wherever located.

ARTICLE 54

FREEDOM OF ASSETS FROM RESTRICTION

To the extent necessary to carry out the purpose and functions of the Bank and subject to the provisions of this Agreement, all property and other assets of the Bank shall be exempt from restrictions, regulations, controls and moratoria of any nature.

ARTICLE 55

PRIVILEGE FOR COMMUNICATIONS

Official communications of the Bank shall be accorded by each member the same treatment that it accords to the official communications of other members.

ARTICLE 56

PERSONAL IMMUNITIES AND PRIVILEGES

1. All governors, directors, alternates, officers and employees of the Bank and experts and consultants performing missions for the Bank:

(i) shall be immune from legal process with respect to acts performed by them in their official capacity;

(ii) where they are not local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations, and the same facilities as regards exchange regulations as are accorded bv members to the representatives, officials and employees of comparable rank of other 1 members; and

(Hi) shall be granted the same treatment in respect of travel- ling facilities as is accorded by members to representatives, officials and employees of comparaVe rank of other members.

2. Experts and consultants performing missions for the Bank shall be accorded such immunities and privileges as are, in the opinion of the Bank, necessary for the independent exercise of their functions during the period of their mission, including the time spent on journeys in connexion therewith.

ARTICLE 57

EXEMPTION FROM TAXATION

1. The Bank, its property, other assets, income and its operations end transactions shall be exempt from all taxation and from all customs duties. The Bank shall also be exempt from any oViization relating to the payment, withholding or collection of any tax or duty.

2 No tax shall be levied on or in respet of salaries and emoluments paid bv the Bank to directors, alternates, officers and other professional staff of the Bank.

3. No tax of anv kind shall be levied on any obligation or seruritv issued by the Bank, Including any dividend or interest thereon, by whomsoever held:

(1) which discriminates against such obligation or security solely because it is issued by the Bank; or

(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Bank.

4. No tax of any kind shall be levied on any obligation or security guaranteed by the Bank, including any dividend or interest thereon, by whomsoever held:

(2) which discriminates against such obligation or security solely because it is guaranteed by the Bank; or

(ii) if the sole jurisdictional basis for such taxation is the loca- tion of any office or place of business maintained by the Bank.

ARTICLE 58

NOTIFICATION OF IMPLEMENTATION

Each member shall promptly inform the Bank of the specific action which it has taken to make effective in its territory the provisions of this Chapter.

ARTICLE 59

APPLICATION OF IMMUNITIES, EXEMPTIONS AND PRIVILEGES

The immunities, exemptions and privileges provided in this Chapter are granted in the interests of the Bank. The Board of Directors may waive, to such extent and upon such conditions as it may determine, the immunities and exemptions provided in Articles 52, 54, 56 and 57 of fhis Agreement in cases where its action would in its opinion further the interests of the Bank. The President shall have the right and the duty to waive the immunity of anv official in cases where, in his opinion, the immunity would impede the course of justice and can be waived without prejudice to the interests of the Bank.

STATEMENT OF OBJECTS AND REASONS

India has decided to become a member of the 'African Development Bank by acceding to the Agreement establishing the African Develop- ment Bank. Chapter VII of the Articles of the Agreement provides for granting to the Bank and its officers and employees, certain status, im- munities, exemptions and privileges in the territory of each member country. Article 50 of the Agreement stipulates that to enable the Bank effectively to fulfil its purpose and carry out functions entrusted to it, status, immunities, exemptions and privileges set forth in Chapter VIT of the Agreement shall be accorded to the Bank in the territory of each member. By this Bill, it is proposed to enact the necessary legislation to give effect to the provisions of the said Chapter VII of the Agreement. Provision has also been made in the Bill empowering the Central Govern- ment to make payments to the Bank towards subscriptions and other charges and for matters connected therewith.

NEW DELHI;

PRANAB MUKHERJEE.

The 29th January, 1&83.

'

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

[Copy of letter No. l|4jAFDB|82, dated the 1st March, 1983 from Shri Pranab Kumar Mukherjee, Minister of Finance to the Secretary, Lok Sabha.]

The President, having been informed of the subject matter of the proposed Bill to imp¹ement the International agreement for the establish- ment and operation of the African Development Bank and for matters connected therewith, recommends the introduction of the Bill in Lok Sabha under articles 117(1) and 274(1) of the Constitution of India and elso consideration of the Bill by Lok Sabha under article H⁷(3) of the Constitution.

The above recommendation was made by the President on +he 1st

February, 1983.

SEC, 2] THE GAZETTE OF INDIA EXTRAORDINARY 7

FINANCIAL MEMORANDUM

Sub-clause (1) of clause 3 of the Bill makes provision for payments of the nature mentioned therein to the Bank after due appropriation made by Parliament by law. Sub-clause (2) of the same clause envisages the creation and issuing to the Bank by the Central Government, if it thinks fit so to do, of certain non-interest bearing and non-negotiable notes or other obligations. It is not possible to make at this stage a precise estimate of the expenditure that would be involved on account of these provisions. However, in accordance with the initial negotiations conducted by the representatives of the Government of India and the Management of the African Development Bank, India is expected to be allocated 1100 shares, each costing ten thousand Bank Units of Account (1 Bank Unit of Account being currently equivalent to US $ 1.33). The total cost of the 1100 shares will be 11,000,000 Bank Units of Account or US $ 14.63 million. Of our total subscription only 25 per cent, is expected to be paid-in and the rest will remain outstanding as callable capital. The paid-in portion of US $ 3.6575 million has to be remitted in five equal instalments of approximately US $ 731500 each. Accordingly, our financial liabilities are projected to be as under: —

In Million Bank Units of Account •

\ 982 1983 1984. 1985 1986 TOTAL 0 ' 55 0-55 0 55 0-55 0 55 2-75 or US $3-6575

million at current

rates of exchange.

2. All the above payments will have to be made in free foreign

exchange.

3. Article 5(3) of the Agreement establishing the Bank permits the Management of the Bank to call for a General Capital Increase from time to time. It is therefore expected that the Management would exercise this right. Any payments that may have to be made by India on account of such General Capital Increases cannot be foreseen at this stage.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 5(2) of the Bill confers power on the Central Government to amend the Schedule in conformity with any amendments, duly made and adopted, of the provisions of the Agreement set out therein.

2. Clause 6 of the Bill confers power on the Central Government to make rules for carrying out purposes of the Act. The immunities, exemptions and privileges of the African Development Bank and its officials and employees having been specified in the Schedule to the Bill, occasions for making rules, if any, will be few and far between. Even if such an occasion arises, as the immunities, exemptions and privileges have been specified in the Bill, it is clear that rules, if any will be confined to matters of procedure and other matters of minor detail relating to the enjoyment of those immunities, exemptions and privileges and their waiver. For instance, if the Bank decides to waive any of the immunities, exemptions or privileges, a rule may be neces- sary prescribing the manner in which and the officer of the Govern- ment to whom such waiver should be communicated.

3. The delegation of legislative power is thus of a normal character.

AVTAR SINGH RIKHY,

Secretary.

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NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI. 1 9 83