Agreement between nations plays an important role in maintaining relations between the countries. The agreement acts as the most diplomatic solutions put forth for any problems that occur between the countries which entered in to the agreement or contract. There are various agreements between the countries for various purposes that purport too many matters including financial, legal, economic, political and social affairs. The foreign policy of a country differs from one another. The foreign affairs between countries are controlled by the stipulated conditions in the agreement. The agreement contains specific instruction or clause that directs the foreign policy of the country.
By virtue of no 13 of 1983, on 26 May 1983, The African development bank was enacted for the operation or implementation of African development act. The main objective of the act is to establish and operate the international agreement for the functioning of African development bank and the matters connected to it. Article 3 of the act specifies the utilization of consolidated fund of India for the purpose of any central government subscriptions. According to article 5 of the provisions in the schedule is enforceable at the same time article also set forth the exemption stating that as article 57 shouldn’t be interpreted as the banks have exemption on duties or taxes on imported goods. Article 6 confers the power of the central government to set rules for the implementation of the act. Article 7 gives the procedure to be adapted for making amendment or annulment in the provisions of the act.
In the schedule of the act makes the enforcement of provisions in the act as construed in article 5. Chapter 7 of the act deals with the important provisions of the act –article 50, 51, 52, 53,54,55,58 and 59 of the act. It includes the status, immunities, privileges and exemption of the act. Article 50 deals with the status of the members to enter into any agreement with international organizations, members or non members of states. This provision provides international legal entity for the bank to enter into any international agreement. Article 51 provides the judicial or legal capacity for the bank to enter into any contract, institution of legal proceedings, acquisition or disposition of assets and liabilities. According to article 52 the immunity of the bank against the judicial proceedings is elaborately stated. The bank has immunity against all legal proceedings except in its borrowing powers and the institution of the suit against the bank by a competent court. By the virtue of Article 52(2) the assets of the bank has immunity from attachment or other legal proceedings until the final disposal of the suit. Article 53 empowers the bank for special exemption of the bank assets and archives from legislature or executive proceedings of attachment or foreclosure. Article 54 deals with the exemption of bank from any nature of moratorium or ban on any assets of the bank.
Article 55 deals with the privilege of official communications of the members of the bank. The official communication made by any member can be treated as the communication made on behalf of the other members. Article 58 deals with the implementation of the provisions of the act by notification by the members. Article 59 states that the immunities and privileges of the act should be implemented only on the interest of the bank. The authority to waive any provisions which defeat the purpose of justice is entirely the within the exclusive power of the president.
The African development bank act 1983 is a special impact on the agreement made internationally that is subject to the provisions of the particular act.