EU Court srikes down sanctions against Bank Tejarat of Iran

Last month, General Court of the European Union delivered its Judgment in respect of Bank Tejarat’s application to annul the restrictive measures imposed against the Bank by the EU, as part of the EU’s programme of sanctions designed to combat Iranian nuclear proliferation.

 

The General Court has found that the EU Council was unable to produce any evidence that Bank Tejarat was involved in any way in the provision of support for Iran’s nuclear proliferation, nor that it assisted any other person or entity to breach or avoid the EU’s restrictive measures in respect of Iran.

 

The Court asserted that the mere fact that the Bank had accounts with two European Banks, both of which had been designated for sanctions by the EU, does not establish that Bank Tejarat provided support for Iranian nuclear proliferation. 

 

In arriving at its decision the General Court upheld the all-important principle under European Law that the Courts of the European Union must, in accordance with the powers and duties conferred upon them by treaty, ensure a full review of all EU legislation, taking account of those fundamental rights which form an integral part of the Union’s legal order. 

 

The General Court said that those fundamental rights include respect for the rights of the defence and the right to effective judicial protection for all. The General Court further found that Article 47 of the Charter of Fundamental Rights of the European Union requires, in particular, that the Courts of the European Union must ensure that any EU measure which affects a person or entity individually is taken on a sufficiently solid factual basis. In other words, there must be good credible evidence against that person or entity.

 

Sarosh Zaiwalla, Senior Partner of Zaiwalla & Co Solicitors who acted for the successful applicant Bank Tejarat said “it is all important for countries governed by the rule of law that the Courts stand up to ensure that any measure which a government takes, which effects a person or entity, is taken on the basis of sufficiently strong evidence and not merely on inference or conjecture”.