BANK OF ETHIOPIA

Hawke's Bay Herald-Tribune, Issue 132, 21 June 1937, Page 7

BANK OF ETHIOPIA

Has Now Ceas«d to Esiit chancertT ruling • f ^ LONDON, May 12. A.reserved judgment in the Qfiah' cery Division yesterday, Mr Justloe Clauson. held that the iBank qf Ethlopia po longer existed, says the Daily g'raph. The judgment was given in an aetio.n by the Bank of Ethiopia against the National Bank of Egypt and Mr WJadimiro Ljguofl, who 'claims to .be the liquidator of the Bank of Etfiiopia. The Court was asked to decidp whether ihe Bank of Ethjopia had heen dissolved, 01% if it still existed, whether it had authorised the action. The Bank of Egypt, who admitted that they held money and seeurities to the order of the Bank of Ethiopia, desired to ensure that they paid tfie right person. Italian Rule Baooqnised. Mr Justice 'ClausQn referred to the Italian occupatiqn of Addis Ahaba, and said that last December the Britilh Government recognised the Italian Government as in faet the Government of the area then under Italian control. "The effect of the Forejgn Offlce certiflcate," remai'ked the Judge, "is that 1 am bound to treat the actg qf the Government which was so recognised as aets which cannot be impngned on the ground that they were not the rightful but a usurping Government." On June 20, he added, a deoree was made plaoing the Bapk of Ethiopia in liqujdation and appointing a liquidator, The effect of that decree, aqpording to the law prevailipg at that time m the area of Ethiopia controlled by thf> Italian ^Government was to dissolve the Bank, exeept so far as it might bo iccessary to keep it on foot for thf ■urposes of liquidation. Empcror's Deoree. The decree bad the effect of putting i! end to the authority of any person.'her than the ' liquidator, or thpse •ting under his authority, to i*epre•mt, act for or bind the bank. There had been produced in court a decree made at -Bath by the Emperor of Ethiopia, and it was sug- ; gested that the deoree had altered the j legal position regardiqg meetings of j direotors of the' Bank of Ethiopia. 1 "I cannot imagine any ground on ! which it could J)p seriously argued that I could pay any attenlibn to that _ decree," said the Judge.