NML Capital Ltd & Yukos Universal Limited

Constitutional Court, NML Capital Ltd & Yukos Universal Limited, Nr. 48/2017, 27 April 2017

The Constitutional Court examines two actions for annulment filed by the companies NML Capital and Yukos Universal against the law of 23 August 2015 introducing Article 1412quinquies of the Judicial Code, which provides for a far-reaching immunity from execution for property of foreign States or international organizations. In light of the case-law of the Strasbourg Court, the Court acknowledges that restrictions on the right to access to Court and the right to property that stem from immunity of execution for property of foreign States are accepted inasmuch as they reflect generally recognized international immunity rules. What is more, Article 19 of the 2004 UN Convention on State Immunity, while not yet in force, can be regarded as indicative of present international custom on States’ immunity from execution.
The Court notes that the requirement under Article 1412quinquies that a State waiver from immunity from execution be ‘express’ is in accordance with the aforementioned Convention and international custom. By contrast, the additional requirement that such waiver must also be ‘specific’ goes beyond what international custom posits inasmuch as this requirement of specificity applies not only to diplomatic property (including embassy bank accounts), consular property, property of special missions, or international organizations (which is permissible), but also to other property of a foreign State more generally. The provision is indeed annulled to the extent that it extends the specificity requirement to the latter. By contrast, the Court upholds the requirement in Article 1412 quinquies that any attachment of the property of a foreign State presupposes prior approval by the juge de saisie.

VANDERSCHUREN, J., "Satisfecit constitutionnel partiel pour l’article 1412quinquies du Code judiciaire", JT 2018, afl. 6737, 560-564 and http://jt.larcier.be/ (6 july 2018).

NML Capital Ltd v Republic of Argentina

Belgian Supreme Court, NML Capital Ltd v Republic of Argentina, Nr. C.13.0537.F, 11 December 2014
ECLI:BE:CASS:2014:ARR.20141211.4 

According to the Court, the right of access to court, as enshrined in Article 6 ECHR, cannot be invoked to force a State to set aside the customary rule of immunity from execution, which seeks to ensure the proper functioning of diplomatic missions and to promote friendly relations between sovereign States. The Court rejects the argument that immunity from execution must be set aside when no alternative means of legal redress are available.


Republic of Argentina v NMC Capital Ltd

Belgian Supreme Court, Republic of Argentina v. NMC Capital LTD, Nr. C.11.0688.F, 22 November 2012
ECLI:BE:CASS:2012:ARR.20121122.3

The judgment annuls a previous judgment by the Brussels Court of Appeals dated 21 June 2011. In the latter judgment , the Court of Appeals took the view that Argentina’s general waiver of immunity from jurisdiction and immunity from execution also covered the goods of Argentina’s diplomatic mission in Belgium, including its bank accounts (without there being a need to verify whether the amounts seized were used for purposes other than the functioning of the diplomatic mission). According to the Supreme Court, this approach violated articles 22, 3 and 25 of the Vienna Convention on Diplomatic Relations as well as the customary rule of ‘ne impediatur legatio’. In particular, the Supreme Court confirmed the need for an explicit and specific waiver of immunity in respect of goods of the diplomatic mission.