Home ›› 04 Apr 2022 ›› Front
The US federal court on March 30 (Wednesday) dismissed the lawsuit of $2.39billion compensation claimed by Nayeem A. Chowdhury, a shareholder of WorldTel Bangladesh Limited, against Bangladesh Telecommunication Regulatory Commission (BTRC) and Banglalink’s parent company VEON.
“The court handed down the dismissal order on March 30 and our lawyers informed us through email. The plaintiff had claimed compensation of around $2.39 billion from BTRC and VEON. As Bangladesh is a sovereign state, the US court observed that the case cannot go to the US court. That is why the court dismissed the case” said Tareq Hassan Siddiqui, Director (Legal) of BTRC.
“They had sought verdict five times in Bangladesh court, among which two were writ petitions with the High Court and other three with civil courts, but their claims were dismissed, and the issue is settled here” he added.
Ultimately, the court came to realize that the case could not be continued in their law, the state does not have the right to deliver any verdict against a sovereign state.
“Our lawyer there confirmed the case dismissal, we did not receive the detailed order of the court, hopefully, we will receive the complete order this week,” said Abu Syed Diljar Hussain, BTRC’s Legal and Licensing Commissioner.
Nayeem Chowdhury, who is currently residing in New York, filed the case against BTRC and VEON (the parent company of Banglalink), with the United States District Court, Southern District of New York on March 19, 2021.
In his case statement, Nayeem sought a judgment against BTRC and VEON for damages allegedly suffered by him due to BTRC’s spectrum auction held on March 8, 2021, by which rights to the 1,800MHz spectrum band were granted to VEON and other telecom operators.
On October 1, 2021, BTRC filed a Motion to Dismiss on the primary ground that sovereign immunity bars the claims against BTRC after the case was moved to the US federal court on April 21, 2021.
Presided over by John P Cronan, the court ruled that BTRC, as an agency or instrumentality of the state of Bangladesh, has sovereign immunity before the federal court in the United States.
The court noted that BTRC successfully established a prima facie case that BTRC is a foreign sovereign under the FSIA. Because BTRC is immune from suit, the plaintiff Chowdhury is not allowed to amend the complaint as to BTRC.
As to VEON, the other defendant, if Nayeem wishes to file an amended complaint and pursue the case further, the plaintiff will have to do so by April 29, 2022. In the event plaintiff fails to amend the complaint by that date, the court will dismiss the case for VEON as well and enter judgment.
BTRC had appointed Barrister Moin Ghani of Alliance Laws in Bangladesh and Foley Hoag LLP, of New York, as legal counsel in this case.
