The right of a foreign company not doing business in Palestine to sue a domestic firm without first registering with the government was established by the Court of Appeal in the suit of A. G. Stybel Publishing House, a German firm not registered in this country, against the Amanut Co. Ltd. and the Dvir Co. Ltd. The latter firm was established by the late Dr. ###rya Levin, Zionist leader.
### however, the foreign firm is carrying on business in Palestine, the court ruled, it must be registered with the government in order to be able to bring action in Palestine courts.
The court further ruled that the burden of proving that a foreign company is doing business here rests with the opposing party.
The Stybel house, which is a partnership with limited liability, had never received authorization from the government of Palestine to carry on business here nor had it registered under the partnership or companies ordinance.
In 1933, the Stybel concern applied to the Jaffa District Court for confirmation of an arbitration award it had won in proceedings against the Amanut and Dvir companies. The two companies objected that since the Stybel Company was not registered in Palestine, it could neither carry on business nor sue.
The higher court took the case on ##peal from the district court and decided that a foreign commercial association manufacturing goods abroad and having no place of business or agency in Palestine is not carrying on business here within the meaning of the law when it sells goods to Palestine rms. Therefore, it can sue in Palestine courts without registering.