CLICO (Guyana) through its attorney, Roysdale Forde had argued that the leave was granted on a petition not yet filed and properly presented to the court, contending that the petition by then Commissioner of Insurance Maria van Beek was filed and that the order for leave was granted after it was filed. This, Forde said, was unlawful and in breach of the High Court rules.
He also questioned whether the jurisdiction of the court, being a chamber jurisdiction was ever properly invoked and stressed that the petition was a nullity and of no legal effect.
Forde made his submissions on a statement made in open court by the Chief Justice that the petition was considered by him and granted one night when it was not yet filed.
The Chief Justice, in his decision, admitted that the petition reached his desk after normal working hours on the afternoon of February 25 and after the Registrar had also left the High Court. But he said the petitioner, Senior Counsel Ashton Chase had emphasized that it was a matter of urgency and the court then heard the ex-parte application.
Justice Chang, whose full ruling was read in court and will be available in writing shortly, said that the then Commissioner of Insurance was authorized to do what she did and that her application to the court was not made in an unlawful manner.
Chase had called Forde’s preliminary submissions diversionary saying that the substantive hearing into CLICO’s winding-up was being stalled. He said too that the court ought to focus on the real hearing, but had submitted that should the Chief Justice set aside the order for leave even though it was granted ex parte it would constitute him sitting in an appeal of his own order. Consequently he said there is no jurisdiction to do so.
Justice Chang had praised Forde for his submission referring to them as thorough, but he ruled against them yesterday saying that the hearing into CLICO will continue. Substantive arguments into the case will continue later this month.
In February van Beek had secured an order from the court to place CLICO (Guyana) under judicial management prior to winding up of the company. The decision came following the move by the Bahamas Supreme Court to order the liquidation of CLICO (Bahamas). CLICO (Bahamas) held 53% of the assets of CLICO (Guyana) at the end of 2007.
Chief Justice Chang ordered, after reading the petition by van Beek and the affidavit in support, that leave be granted to van Beek to present a petition under section 67 (1) of the Insurance Act 1998 and that upon the filing of the petition that CLICO Life and General Insurance Company (South America) Limited be placed immediately under judicial management until further orders by the court.
Van Beek has since left the country after she was injured in an attack and Government has passed legislation in Parliament which has paved the way for the Bank of Guyana (BoG) to take over the functions of the Commissioner of Insurance.
