Britain’s Supreme Court has quashed sanctions imposed on Iran’s Bank Mellat since 2009 over alleged links to the country’s disputed nuclear program.
The ruling of the British court echos a ruling in January by the EU General Court overturning sanctions imposed on the bank since 2010.
The Supreme Court Judge Jonathan Sumption said the British government’s actions were “arbitrary”, “irrational” and “disproportionate” in singling out Iran’s largest private bank, Bank Mellat.
A senior partner at the bank’s law firm was quoted as saying: “Today's ruling is a victory for the rule of law as much as it is for Bank Mellat.”
The sanctions barred the British financial sector from having any business transaction with the bank. The bank still continues to face sanctions imposed on it by the United States.
The rulings by the British and EU courts have put the bank in a position to sue the British government for damages.