Broadsheet threatens further enforcement action unless Rs481m paid

LONDON: The Broadsheet LLC has threatened to commence further enforcement action against the assets of Pakistan if an estimated amount of $2.2 million (Rs481 million) towards accrued interest, outstanding judgment debt and legal costs is not paid without delay.

This correspondent has obtained extensive communication of the last two weeks between Pakistan’s lawyers at Allen & Overy and Broadsheet’s lawyers at Crowell & Moring. The Broadsheet has asked Pakistan to immediately pay the following amounts: $1,180,799 in respect of further interest owed by Pakistan on judgment debts, accrued after the issue of Broadsheet’s third party debt order on partial payment by funds received from United National Bank on December 31, 2020; $40,677 being the balance of the judgment debt remaining unsatisfied; $5,889 interest accrued on the balance of the judgment debt being and continuing to accrue at the daily rate of $267.72 and Broadsheet’s enforcement cost currently standing at around $800,00.

The exchanges show that Pakistan’s lawyers have told the Broadsheet’s lawyers that the government of Pakistan desires to resolve the matter without the need for further enforcement action and cited the Covid pandemic as the reason why there has been a delay in obtaining instructions from the NAB and but the Broadsheet’s lawyers have threatened that further court enforcement action will take place – like the previous freezing orders – if the long overdue judgment debts are not paid.

An email from Allen and Overy explained why there has been a delay from Pakistan’s end and why their client needs more time: “Our clients received your letter, which superseded your letter of January 18, 2021, late on Friday night. The Pakistani administration does not operate at the weekend and inter-departmental approvals, which are necessary in this instance, take longer than a week to obtain. The severity of the pandemic situation in Pakistan also means that the Pakistani administration operates a reduced service.”

The Pakistan government’s legal representative had told the Broadsheet’s lawyers that they will respond “as soon as we can” but the Broadsheet’s lawyers said they have been left with absolutely no alternative but to commence further enforcement action against the government of Pakistan. They added: “Bearing in mind the significant publicity about this case in Pakistan, we find it extraordinary that your client continues to delay and ignore the orders of the High Court.”

In a letter sent from London to the NAB Headquarters on January 24, 2021 reference, the Broadsheet set out what it has incurred in seeking the enforcement of Justice Teare’s quantum and costs orders (sealed October 25, 2019 and November 29, 2019 respectively). This was in reference to nearly $29 million that the Broadsheet seized at the United Bank Limited’s London branch through execution proceedings against the bank on December 31, 2020, pursuant to Deputy Master Lay’s order of December 17, 2020. The letter explained to the NAB and the Allen & Overy that the Pakistan government failed to honour the orders and judgment of London and then Broadsheet had to go get enforcement orders from the court and as a result, legal costs jumped.

The Broadsheet’s lawyers have counted the legal costs as following: legal costs $791,199; research $58,928; advice to client £93,852; service issues and dealing with FCO $27,666; dealing with third parties $47,016; work on documents $262,075; communication with counsel $59,561; communication with the court $5762; correspondence with Allen and Overy $16,862; and internal discussion $219,472.

A spokesman of the Broadsheet’s lawyers said the Broadsheet repeatedly made the NAB aware of Broadsheet’s endeavors to enforce Justice Teare’s orders and have kept them apprised of their increasing liability for costs and interest. He said the NAB’s inability to satisfy its liability to the Broadsheet in full only serves to prolong matters and increase Pakistan’s liability.