"The outcome in this case could present a further threat to the international perception of English institutions as being free from political interference, as well as the Bank of England’s (pictured with logo Photos: Wikipedia) reputation abroad as a safe repository for sovereign assets,” commented Sarosh Zaiwalla, senior partner at the London based law firm Zaiwalla and Company that is representing Banco Central de Venezuela’s (BCV) claim in the English Court of Appeal against The Governor and Company of The Bank of England. This being an "important case… (heard) on an expedited basis,” from September 22 to 24, 2020, the hybrid hearing (where litigants and their legal representatives may attend the court in person or remotely) was likewise open to the Press to attend in person or via remote access.
With the presidentship of Venezuela being under dispute between Nicolas Maduro and Juan Guaido, at issue in the case in the English Court is whether The Bank of England should accept instructions to deal with the approximately € 1.8 billion (Rs 154,892 crores) of Venezuelan gold reserves from the president of BCV appointed by Maduro and sitting in the BCV’s offices in Caracas, or the virtual president of the BCV appointed by Guaido, and who is not a resident of Venezuela, stated the press release from Zaiwalla.
According to the earlier July 2, 2020 judgment of the High Court, "the UK government’s purported recognition of Guaido as constitutional interim President of Venezuela means that under the ‘One Voice’ and ‘Act of State’ doctrines, the Court was precluded from investigating the validity of any of Guaido’s acts or appointments, even if previously held to be illegal by the courts in Venezuela.”
Zaiwalla maintained, "This case raises a number of issues of public international law which forbids interference by any country in the internal affairs of another sovereign nation, and the limits that this places on the UK government’s power to recognize foreign governments or rival contenders who exercise no effective control over any territory… These issues tread the sensitive line between law and politics, and it is more vital than ever that they are resolved.”
It is BCV’s contention that the assets of the Venezuelan people should be made available for the country’s fight against Covid-19. Under Maduro’s governance, BCV had purportedly arranged for the proceeds of a gold sale to be transferred directly to the United Nations Development Programme to help it procure the aid, equipment and medical supplies essential to help the country in its fight against coronavirus.
Zaiwalla’s firm that is considered a specialist in international arbitration and litigation regularly acts for global clients on high value, politically delicate disputes. It had successfully represented Bank Mellat in its four billion dollars (Rs 29,570 crores) damages claim against the UK Treasury for wrongfully imposing sanctions against the Iranian bank. It had also advised the Russian Federation in a successful appeal at The Hague against $ 50 billion (Rs 369,623 crores) arbitration awards in favor of the former owners of Yukos.