The African Development Bank Act, 1983
# THE AFRICAN DEVELOPMENT BANK ACT, 1983
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 ARRANGEMENT OF SECTIONS
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SECTIONS


1. Short title, extent and commencement.
2. Definitions.
3. Payments to Bank.
4. Reserve Bank to be depository for Bank.
5. Conferment of status and certain immunities, exemptions and privileges on Bank and conferment

of certain immunities, exemptions and privileges on its officers and employees.

6. Power to make rules.
7. Notifications issued under section 5 and rules made under section 6 to be laid before Parliament.


THE SCHEDULE


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# THE AFRICAN DEVELOPMENT BANK ACT, 1983


# ACT NO.13 OF 1983



[26th May, 1983.]

# An Act to implement the international agreement for the establishment and operation of the
 African Development Bank and for matters concerned therewith.

BE it enacted by Parliament in the Thirty-fourth Year of the Republic of India as follows:—
**1. Short title, extent and commencement.—(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[1] as the Central Government may, by notification in the

Official Gazette, appoint.

**2. Definitions.—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.

**3. Payments to Bank.—(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 Articles 6, 7, 10 and

21 of the Agreement;


(b) any sums payable by the Central Government to the Bank under Article 28 of the Agreement;


(2) The Central Government may, if it thinks fit so to do, create and issue to the Bank, in such form as

it thinks fit, any non-interest bearing and non-negotiable notes or other obligations.

**4. Reserve Bank to be depository for Bank.—The Reserve Bank of India shall be the depository of**

the Indian currency holdings of the Bank.

**5.** **Conferment of status and certain immunities, exemptions and privileges on Bank and**

**conferment** **of** **certain** **immunities,** **exemptions** **and** **privileges** **on** **its** **officers** **and**

**employees.—(1)** Notwithstanding anything to the contrary contained in any other law, the provisions of
the 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 construed as—

(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.

(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.

**6. Power to make rules.—The Central Government may, by notification in the Official Gazette,**

make rules for carrying out the purposes of this Act.

**7. Notifications issued under section 5 and rules made under section 6 to be laid before**

**Parliament.—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 of the House of
Parliament, while it is in session, for a total period of thirty days which may be comprised in one session

1. 15th December, 1983, vide notification No. G.S.R. 889(E), dated 14th December, 1983, see Gazette of India, Extraordinary,

Part II, sec. 3(i).

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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 notification 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 modification or annulment shall be without
prejudice to the validity of anything previously done under that notification or rule.

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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 organisations. To the same ends, the status, immunities, exemptions and
privileges set forth in this Chapter shall be accorded to the Bank in the territory of each member.


ARTICLE 51


STATUS IN MEMBER COUNTRIES


In the territory of each member the Bank shall possess full judicial 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 immunity 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 of 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 State 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 and assets of the Bank shall, wherever located and by whomsoever held, be immune

from all forms of seizure, attachment or execution before the delivery of final judgment against the Bank.


ARTICLE 53


IMMUNITY OF ASSETS AND ARCHIVES


1. Property and assets of the Bank, wherever located and by whomsoever held, shall be immune from

search, requisition, confiscation, expropriation or any other form of taking or foreclosure by executive or
legislative action.

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.

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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 by members to the representatives, officials and
employees of comparable rank of other members; and

(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.


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 connection therewith.


ARTICLE 57


EXEMPTION FROM TAXATION


1. The Bank, its property, other assets, income and its operations and transactions shall be exempt

from all taxation and from all customs duties. The Bank shall also be exempt from any obligation relating
to the payment, withholding or collection of any tax or duty.

2. No tax shall be levied on or in respect of salaries and emoluments paid by the Bank, to directors,

alternates, officers and other professional staff of the Bank.

3. No tax of any kind shall be levied on any obligation or security issued by the Bank, including any

dividend or interest thereon, by whomsoever held:

(i) 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:

(i) 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 location 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.

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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 this 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 any 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.

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