BVI court unfreezes PIA hotels, assets in Reko Diq case

By: News Desk      Published: 12:12 AM, 26 May, 2021
BVI court unfreezes PIA hotels, assets in Reko Diq case
File photo of PIA's Scribe Hotel in Paris, France.

Pakistan succeeded to unfreeze PIA hotels and other assets by winning the case of Reko Diq on Tuesday.

Pakistan Air Line (PIA) declared it a prevailing of justice by the Grace of Allah and with the prayers of Pakistani people.

According to 24NewsHD TV Channel, the British Virgin Islands (BVI) court Tuesday issued orders to unfreeze the PIA offshore assets including Roosevelt Hotel withdrawing its initial orders to freeze it in the Reko Diq case.

The court ordered to give the control of the freeze assets including Scribe Hotel in Paris and Roosevelt Hotel in New York, United States back to the PIA.

Pakistan Attorney General Khalid Jawed Khan declaring it a great level victory of Pakistan said the receiver had removed from PIA partner Roosevelt Hotel in New York and Scribe Hotel in Paris.

Both the hotels were being sought as compensation from Pakistan against the cancellation of the license of a cooper and gold mining to the Reko Diq. He also confirmed that all earlier orders passed against the PIA have been recalled now.

The BVI High Court of Justice in its earlier orders attached the PIA partner hotels with the Reko Diq penalty on a request of the Tethyan Copper Company (TCC) but on Tuesday retained both the hotels.

The World Bank's International Centre for Settlement of Investment Disputes (ICSID) has stayed the enforcement of a $6 billion penalty on Pakistan for denying a mining lease for the Reko Diq project to Australia's Tethyan Copper Company (TCC).

In July last year, German Klaus Sachs-headed tribunal imposed the massive penalty and held that the state had committed an unlawful expropriation under the Australia-Pakistan bilateral investment treaty.

Later, the TCC approached five different countries' courts for the enforcement of the penalty. In November, Pakistan moved ICC for the annulment of the award on several grounds. When the country's plea was registered, an interim stay was granted automatically on the enforcement proceedings initiated by the TCC.

A hearing to confirm the stay order took place via video link in April. Later, the tribunal ruled in favour of Pakistan, confirming the stay on the enforcement of the award.

So now, the BVI court gave an order to unfreeze the PIA assets removing the penalty in the Reko Diq case.

Federal Minister Farrukh Habib in a tweet said the BVI court had announced a verdict in favour of PIA, adding that in the Reko Diq case, all orders passed against PIA earlier are removed now.

The federal minister for state further stated that the receiver, removed from Roosevelt Hotel in NY and Scribe Hotel in Paris, France, and the cost of litigation is awarded.

Categories : Pakistan, National