HARBHAJAN SINGH DHALLA vs UNION OF INDIA

The Supreme Court held that under Section 86 of the Code of Civil Procedure, the Central Government's refusal to grant permission to sue a foreign embassy on political grounds was improper. The Court emphasized that while foreign states enjoy immunity from being sued, this immunity is not absolute and must align with the rights of citizens to seek remuneration for services rendered. The Court ruled that the Central Government should not adjudicate the merits of a case but should grant consent unless there are compelling political reasons, thereby affirming the principles of natural justice and the right to trade under the Indian Constitution.