Payment of Various Serbian Loans Issued in France Case (France V. Kingdom of the Serbs, Croats and Slovenes), Permanent Court of International Justice (picj), 1929

France (bondholders out of it) to sue the Kingdom of the Serbs, Croats and Slovenes on «upon what monetary bases payment of the principal and interest of these loans should be effected».

Should the Serbs pay in paper francs or gold or other currency?

Force Majeure

It is said that war is not force majeure and not exempt from the duty of Serbia.

Between 1895 and 1913, certain Serbian loans were issued in France. French holders of the bonds of these loans claimed a right to payment of interest and redemption in gold currency; the Serb-Croat-Slovene Government claimed to be bound to make payment only in French paper currency.

By a special agreement of 19 April 1928, the French and Serbian Governments submitted the dispute to the P.C.I.J., which on 12 June 1929 held (9 to 3) that

(1) although the strict terms of the special agreement referred to the Court a dispute between the Serbian Government and French bondholders, and although that dispute was exclusively concerned with their relations within the domain of municipal law, the essential international dispute was between the two governments, the French Government exercising its right to protect its nationals;

(2) although, under French law, stipulations in domestic transactions for payment in gold were null and void, this was not the case as regards international transactions, the loan contracts now in question being governed by the law of the borrowing State; and

(3) the loan contracts required payment by reference to a gold standard of value. http://www.answers.com/topic/serbian-loans-case

http://www.worldcourts.com/pcij/eng/decisions/1929.07.12_payment1.htm

The “Societe Commerciale De Belgique” (Belgium V. Greece), Permanent Court of International Justice, 1939

1925, a Belgian company signed a contract with the Greek government authorized. She builds them railroad Greeks pay IOUs. 1932, Greeks have canceled receipts. Belgians sued them.

The Greeks said that the debt portion of debt subject to the general rules and payments.

http://www.answers.com/topic/societe-commerciale-de-belgique

The Mavrommatis Palestine Concessions, Greece V. Britain, Permanent Court Of International Justice (picj), 1924.08.30

Greek Mavrommatis received concessions from Turkey to work in British Palestine. The British hired a person to the same work than Mavrommatis deprived of its profit. Greece was upset and sued UK to the Court.

The foundations of diplomatic protection were stated in 1924 by the Permanent International Court of Justice in connection with the Mavrommatis case: "It is an elementary principle of international law that a State is entitled to protect its subjects, when injured by acts contrary to international law committed by another State, from whom they have been unable to obtain satisfaction through the ordinary channels. By taking up the case of one of its subjects and by resorting to diplomatic action or international judicial proceedings on his behalf, a State is in reality asserting its own rights – its right to ensure, in the person of its subjects, respect for the rules of international law."

http://www.worldcourts.com/pcij/eng/decisions/1924.08.30_mavrommatis.htm

http://natialaw.blogspot.ru/2011/03/mavrommatis-case.html