Bank of Ethiopia V. National Bank of Egypt and Liguori 1937

Bank of Ethiopia V. National Bank of Egypt and Liguori 1937

Principle: To be a de facto government that government must have effective control over the territory.

Fact: An Italian decree promulgated after the capture of Addis Ababa in 1936 purported to dissolve the Bank of Ethiopia. That Bank claimed certain accounts and orders against the National Bank of Egypt and against the liquidator appointed under the Italian decree


1. whether the Bank of Ethiopia had been dissolved or had otherwise ceased to exist, and if not, whether it had authorised the bringing of the action.

Decision: It was held that The Bank of Ethiopia had been dissolved by the Italian decree it had the authority to bring such action.

Reasoning:  The government of Italy was a de facto government in entire control of the territory occupied and therefore having complete governmental control over that territory.

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Rayhanul Islam

Advocate Rayhanul Islam is the founder and Editor in Chief of Law Help BD. He is also a researcher. Critical thinking is his main focus. He is on a quest to bring positive change to the legal sector of Bangladesh. He promotes legal knowledge and human rights concept to the root level. e-mail: [email protected]

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