Breach of Contract-Banking- Foreign Sovereign Immunities Act

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7^th Circuit Court of Appeals

Case Name: Arun Bhattacharya v. State Bank of India

Case No.: 22-2734

Officials: Brennan, Scudder, and Kirsch, Circuit Judges.

Focus: Breach of Contract-Banking- Foreign Sovereign Immunities Act

Arun Bhattacharya, a U.S. citizen and Illinois resident of Indian origin, opened a non-resident account with State Bank of India through one of its India-based branches. When State Bank of India retroactively changed the terms of the account, Bhattacharya sued for breach of contract. The district court dismissed his complaint for lack of subject matter jurisdiction, concluding that the Foreign Sovereign Immunities Act applied to Bhattacharya’s claim and immunized the Bank from suit.

The Seventh Circuit affirmed. The court held that the district court was correct to conclude that these activities are insufficient to establish a direct effect in the United States. Plaintiff’s non-resident account is maintained in India, and the relevant transactions were with the Bank’s India-based branches.

Affirmed.

Decided 06/12/23

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