8
BOSPHORUS HAVA YOLLARI TURİZM VE TİCARET ANONİM ŞİRKETİ
v. IRELAND JUDGMENT
36. In interpreting Regulation (EEC) no. 990/93, Mr Justice Murphy had
regard to its purpose. He found the aircraft not to be one to which Article 8
applied, as it was not an aircraft in which a majority or controlling interest
was held by a person or undertaking in or operating from the former FRY,
and that the decision of the Minister to impound was therefore ultra vires.
However, the aircraft was, at that stage, the subject of an injunction
obtained (in March 1994) by a creditor of JAT (SNECMA) preventing it
from leaving the country. That injunction was later discharged on 11 April
1995.
F. The second judicial review proceedings: the High Court
37. Having indicated to the applicant company that the Minister for
Transport was investigating a further impoundment based on Article 1.1(e)
of Regulation (EEC) no. 990/93, the Department of Transport informed the
applicant company by a letter of 5 August 1994 of the following:
“The Minister has now considered the continuing position of the aircraft in the light
of the recent ruling of the High Court and the provisions of the Council regulations
referred to.
Arising out of the Minister's consideration, I am now directed to inform you that the
Minister has ... directed that the aircraft ... be detained pursuant to Article 9 of
[Regulation (EEC) no. 990/93] as an aircraft which is suspected of having violated the
provisions of that regulation and particularly Article 1.1(e) and [Regulation (EEC)
no.] 1432/92. The aircraft will remain detained pending completion of the Minister's
investigation of the suspected violation as required under Article 9 and Article 10 of
Regulation [(EEC) no.] 990/93.”
Although not noted in that letter, the Minister's concern related to the
applicant company's setting off of JAT's financial obligations (certain
insurance, maintenance and other liabilities) under the lease against the
rental monies already paid by it into the blocked bank account.
38. On 23 September 1994 the United Nations Security Council adopted
Resolution 943 (1994). Although it temporarily suspended the sanctions as
peace negotiations had begun, it did not apply to aircraft already
impounded. It was implemented by Regulation (EC) no. 2472/94 on
10 October 1994.
39. In March 1995 the applicant company was given leave to apply for
judicial review of the Minister's decision to re-impound the aircraft. By a
judgment of 22 January 1996, the High Court quashed the Minister's
decision to redetain the aircraft. It noted that almost all of the monies which
had been paid into the blocked account by the applicant company had by
then been used up (with the consent of the holding bank in Turkey) in order
to discharge JAT's liabilities under the lease. The crucial question before the
High Court was the Minister's delay in raising Article 9 of Regulation
(EEC) no. 990/93 given that the applicant company was an “innocent” party