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The Hague rejects Bahrain’s bid to overturn €214m award to Iranian banks
According to Iran’s Legal Affairs Center of the Presidential Office, the court dismissed Manama’s challenge to the arbitration decision, which stemmed from the Iranian banks’ legal action against Bahrain’s 2015 seizure and forced liquidation of Future Bank, IRNA reported.
The ruling confirms Bahrain’s obligation to compensate the banks, as reported by IRNA.
Bahrain had alleged that the banks violated international sanctions regimes, but the arbitration tribunal dismissed these claims, finding insufficient evidence of unlawful conduct during the period leading to the asset seizure.
In its November 2021 ruling, the tribunal concluded that Bahrain’s confiscation and liquidation of Future Bank were politically motivated and “disproportionate” under international law, ordering Manama to compensate Bank Melli and Bank Saderat with €214 million in damages.
Following the verdict, Bahrain appealed to The Hague Court of Appeal to annul the award, contending that the tribunal overstepped its jurisdictional authority and that upholding the decision would contravene Dutch public policy.
However, after a three-year legal review process, the court rejected Bahrain’s arguments outright, ruling that its jurisdictional objections were procedurally time-barred and failing to demonstrate any violation of public order.