Economy, Business And Markets

Bank Mellat Litigation in UK Slated for October

Bank Mellat Litigation in UK Slated for OctoberBank Mellat Litigation in UK Slated for October

The Bank Mellat sanctions litigation, which has been through both the UK Supreme Court and the European Union Court of Justice, is now going back to the UK High Court to deal with the damages claim. The claim is for $4 billion; the largest claim made against HM Treasury, and is slated to begin in October, according to

Bank Mellat is the largest private bank in Iran. In 2009, it was sanctioned by Her Majesty’s Treasury, under the Financial Restrictions (Iran) Order, pursuant to the powers granted to it by the 2008 Counter-Terrorism Act. The 2009 Order prohibited UK financial institutions from having any business relations with Bank Mellat.

Bank Mellat challenged the 2009 Order on the grounds that it violated its rights under the European Convention on Human Rights, including its rights to property and right to a fair trial. The dispute was heard by the General Court before going to the ECJ, where it was held that Bank Mellat was not a state-owned bank.

Returning to the UK, the Supreme Court ordered HM Treasury to pay Bank Mellat’s costs and it remitted the case to the High Court for the assessment of damages caused to Bank Mellat as a result of the 2009 Order. Following the Supreme Court judgment, Bank Mellat is seeking $4 billion in damages.