A foreign airline owned by its government cannot claim sovereign immunity from suits in India, the Supreme Court stated while rejecting the defence of Ethiopian Airlines in a consumer case. The carrier is “accountable for the contractual and commercial activities and obligations that it undertakes in India,” the judgment said while asking the consumer commission to deal with the complaint of a consumer. The latter sent a consignment of chemicals to Tanzania which deteriorated due to delay caused by the airline. The consigner filed a consumer complaint. The airline argued that it was immune from suits as it was state-owned. The court rejected the contention and said that in the modern era, where there is close interconnection between different countries as far as trade, commerce and business are concerned, the normal rules of the market should prevail. If state-owned entities are exempted, “the rule of law would be degraded and international business will grind to a halt.”
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