• British Virgin Islands high court recalls all orders passed against PIA
• Removes the receiver from Roosevelt, Scribe hotels
• Awards cost of litigation

ISLAMABAD: The High Court of Justice in the British Virgin Islands (BVI) on Tuesday ruled in favour of Pakistan in a case initiated by Tethyan Copper Company (TCC) for attachment of Pakistan’s major assets abroad, including two PIA hotels in New York and Paris, in the Reko Diq international arbitration.

“Pakistan has won the BVI case initiated by TCC to enforce the ICSID award,” stated the International Disputes Unit (IDU), housed inside the attorney general office on the Supreme Court premises, also explaining that all ex-parte orders obtained by TCC earlier have been set aside.

The TCC had initiated the dispute for the enforcement of July 12, 2019, $5.97 billion award against Pakistan by the International Centre for Settlement of Investment Disputes (ICSID) in the Reko Diq litigation.

ISLAMABAD: The High Court of Justice in the British Virgin Islands (BVI) on Tuesday ruled

“A short while ago judgement was announced by BVI High Court,” Attorney General for Pakistan Khalid Jawed Khan said while talking to Dawn. He said it was a great legal victory for Pakistan in general and the Pakistan International Airlines (PIA) in particular.

Explaining, the AGP stated that all the orders passed against PIA earlier now have been recalled by the BVI High Court besides the receiver appointed has been removed from the Roosevelt Hotel, New York, and the Scribe Hotel, Paris. The cost of litigation was also awarded.

On Dec 16, 2020 the BVI High Court through its ex-parte order had attached the assets belonging to the Pakistan International Airlines Investment Limited (PIAIL) including company’s interests in two hotels, namely Rossevelt Hotel in Manhatten, New York, and the Scribe Hotel in Central Paris as well as froze 40 per cent interest of the PIA in a third entity, Minhal Incorporated. The BVI court in its Dec 16 order had also appointed the receiver on an interim basis.

The IDU stated that the BVI high court had ruled that it had no jurisdiction to decide the matter besides the receiver appointed had been discharged with immediate effect.

Prime Minister Imran Khan has also appreciated and lauded the efforts of the international disputes unit and the office of the AGP that helped securing a great victory for Pakistan.

The IDU said the provisional charging order against PIA’s BVI companies was also set aside entirely besides TCC was ordered to pay costs of the present proceedings. Thus, the attempt to “steal” Roosevelt and Scribe hotels had been frustrated, the dispute unit added.

The information about the attachment proceedings and the order of the high court of justice of BVI was communicated to Pakistan on Dec 23, 2020.

Earlier, the AGP office had stated that Pakistan would vigorously pursue proceedings initiated by TCC in any jurisdiction and that the government reaffirmed its commitment of protecting national assets wherever they may be located.

The ICSID tribunal had taken up the dispute between Pakistan and TCC that had claimed $8.5 billion for rejecting latter’s application by the mining authority of Balochistan for the multimillion dollar mining lease in the province in 2011.

Earlier, Pakistan had taken the plea before World Bank’s ICSID that the agreement /mining licence at the Reko Diq was procured through corrupt means and therefore, the claimant (TCC) could not ask for damages.

TCC is a 50-50 joint venture of Barrick Gold Corporation of Australia and Antofagasta PLC of Chile, whereas the Reko Diq district in the Balochistan province of Pakistan is famed for its mineral wealth, including gold and copper.

Published in Dawn, May 26th, 2021