MTS Wins Appeal Over Seizure of Kyrgyz Network Assets
Russia's Mobile TeleSystems (MTS) has announced that it has successfully appealed the decision of an Isle of Man court to decline jurisdiction over their claim for the unlawful seizure of Kyrgyz mobile operator, Bitel. Almost exactly a year ago, the court declined to hear the case, and MTS launched its appeal.
In January 2007, MTS (via local subsidiaries) brought a counterclaim in the High Court of Justice in the Isle of Man against a group of companies, including Altimo and Altimo Holdings, in order to expedite the resolution of the dispute in relation to the ownership rights in Bitel. The counterclaim was filed in response to a damage action brought by Bitel in the same court against MTS. BitelĂ's actions were filed in connection with the decisions of the Kyrgyz courts that deprived MTS of its ownership rights in Bitel.
In the counterclaim, MTS states that as a result of Kyrgyz Judgments the Bitel interests were unlawfully seized and transferred by entities controlled by Altimo and all of BitelĂ's assets were subsequently unlawfully transferred to Sky Mobile (now controlled by VimpleCom). These Kyrgyz judgments were made as a result of flagrant breach by the Defendants of lawful injunctions granted by the BVI and English Courts, which characterized the litigation leading to the Kyrgyz judgments as "vexatious and oppressive" and outside the appropriate arbitration forum.
In May 2007 it was confirmed in the London Court of International Arbitration (LCIA) that the Isle of Man Companies were not obligated to transfer ownership rights in Bitel to any other party, which means that the Isle of Man Companies are the rightful owners of Bitel.
On November 28, 2008, the High Court of Justice in the Isle of Man accepted that the Bitel case should proceed under its jurisdiction.
MTS said that it will now proceed to prosecute its claims against a group of companies, including Altimo and Altimo Holdings, and all those "who derive their interest from their illegal conduct". MTS seeks return of its interests, substantial damages and compensation.
Posted to the site on 8th December 2008
