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Schedule 1 of The International Development Association (Status, Immunities and Privileges) Act, 1960

THE SCHEDULE (See section 3) Provisions of the agreement which shall have force of law ARTICLE VIII STATUS, IMMUNITIES AND PRIVILEGES Section 1.—Purposes of Article. To enable the Association to fulfil the functions with which it is entrusted, the status, immunities and privileges provided in this Article shall be accorded to the Association in the territories of each member. Section 2.—Status of the Association. The Association shall possess full juridical personality and, in particular, the capacity:—

(i)to contract;
(ii)to acquire and dispose of immovable and movable property;
(iii)to institute legal proceedings. Section 3.—Position of the Association with regard to Judicial Process. Actions may be brought against the Association only in a court of competent jurisdiction in the territories of a member in which the Association has an office, 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. The property and assets of the Association shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Association. Section 4.—Immunity of Assets from Seizure. Property and assets of the Association, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action. Section 5.—Immunity of Archives. The archives of the Association shall be inviolable. Section 6.—Freedom of Assets from Restrictions. To the extent necessary to carry out the operations provided for in this Agreement and subject to the provisions of this Agreement, all property and assets of the Association shall be free from restrictions, regulations, controls and moratoria of any nature. Section 7.—Privilege for Communications. The official communications of the Association shall be accorded by each member the same treatment that it accords to the official communications of other members. Section 8.—Immunities and Privileges of Officers and Employees. All Governors, Executive Directors, Alternates, Officers and employees of the Association,
(i)shall be immune from legal process with respect to acts performed by them in their official capacity except when the Association waives this immunity;
(ii)not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regard exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;
(iii)shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials and employees of comparable rank of other members. Section 9.—Immunities from Taxation.

(a)The Association, its assets, property, income and transactions authorized by this Agreement, shall be immune from all taxation and from all customs duties. The Association shall also be immune from liability for the collection or payment of any tax or duty.
(b)No tax shall be levied on or in respect of salaries and emoluments paid by the Association to Executive Directors, Alternates, officials or employees of the Association who are not local citizens, local subjects, or other local nationals.
(c)No taxation of any kind shall be levied on any obligation or security issued by the Association (including any dividend or interest thereon) by whomsoever held,
1. (i)which discriminates against such obligation or security solely because it is issued by the Association; or
2. (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 Association.
(d)No taxation of any kind shall be levied on any obligation or security guaranteed by the Association (including any dividend or interest thereon) by whomsoever held,
1. (i)which discriminates against such obligation or security solely because it is guaranteed by the Association; or
2. (ii)if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Association.

Summary

The Schedule sets out Article VIII of the Agreement, which covers the status, immunities, and privileges of the Association.
The Association has full juridical personality, meaning it has the capacity to contract, acquire or dispose of property, and start lawsuits.
Lawsuits against the Association can only be brought in a court of competent jurisdiction where it has an office, has appointed an agent, or has issued or guaranteed securities, and no member states can sue it.
The Association's property and assets are immune from search, requisition, confiscation, or any form of seizure by legislative or executive action, and immune from attachment before final judgment.
Official communications of the Association are treated with the same privilege as other members, and its archives are completely inviolable.
Officers and employees are immune from legal process for their official acts, and non-local employees are immune from immigration restrictions, alien registration, national service, and taxes on their salaries.

Practical examples

1In April 1965, the Association wants to rent an office building in New Delhi. Under Section 2 of the Schedule, the Association acts as a full legal person, signs the lease agreement with the landlord, Mr. Kapoor, and pays the security deposit.

2In July 1968, a local police officer wants to search the filing cabinet in the Association's office. Under Section 5 of the Schedule, the office manager, Jean, explains that the archives are inviolable, and the officer cannot search them without the Association's consent.

3In October 1970, a foreign officer of the Association named Robert, who is not an Indian national, arrives at the airport. Under Section 8 of the Schedule, customs and immigration officials grant Robert exemption from alien registration requirements.

FAQ

1. Can the Association buy land or sign contracts in India?

Yes, under Section 2 of the Schedule, it has full juridical personality, meaning it has the capacity to contract, and to acquire and dispose of both movable and immovable property.

2. Can a member country sue the Association?

No, Section 3 of the Schedule states that no actions shall be brought against the Association by members or persons deriving claims from members.

3. Are the Association's archives safe from government search?

Yes, Section 5 of the Schedule states that the archives of the Association are inviolable, which means they are completely protected from search or interference.

4. Are foreign employees of the Association exempt from local income tax on their salaries?

Yes, under Section 9 of the Schedule, no tax is levied on salaries paid by the Association to officials or employees who are not local citizens, subjects, or nationals.

5. When can an officer of the Association be sued for their official actions?

Officers are immune from legal process for official acts, except when the Association specifically waives this immunity.

Test yourself

Q1.What legal capacity does the Association possess under Section 2 of the Schedule?

Q2.Where can a legal action be brought against the Association under Section 3 of the Schedule?

Q3.What does the Schedule say about the archives of the Association?

Q4.Under Section 8 of the Schedule, when does an officer have immunity from legal process for acts performed in their official capacity?

Q5.Under Section 9 of the Schedule, whose salaries are exempt from taxation?

Q6.What protection is given to the property and assets of the Association from seizure before a final judgment is delivered?

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