The Iranian president’s law firm said in a statement Monday that the Hague appeals court issued a ruling on April 22nd, confirming their claims against the PCA and Bahrain issued by the PCA in favour of Meri Iran and bank Saderat Iran in November 2021.
Two Iranian banks had allegedly been politically motivated in their lawsuit against the Bahrainian government and its central banks in 2005 by the decision to confiscate a future bank, a lender that the two Iranian banks jointly own most of their shares.
PCA arbitrators had ruled in their verdict that the expropriation of future banks of Bahrain, an entity established in Arab countries to handle financial transactions with Iranian companies, was illegal.
Bahrain then appealed to the ruling, awarding two Iranian banks 214 million in damages, challenging jurisdiction over the PCA’s case, and arguing that Manama’s decision to confiscate future banks was in compliance with international sanctions on Iran.
However, the Hague appeals court dismissed the claim and upheld the compensation verdict issued by the PCA arbitrator, the Iranian president said.
After the Arab High Criminal Court issued a verdict on July 29, 2021, belonging to banks Meli, Saderat Bank and the Central Bank of Iran (CBI), Iran took legal action against Bahrain.
The Bahraini Court argued in the ruling that the two Iranian banks were engaged in money laundering activities to benefit the CBI and other Iranian groups.
MNA