A "hopeless' statement of claim filed by the Pacific International Commercial Bank Ltd (PICB) against the National Reserve Bank of Tonga (NRBT) was struck out by the Lord Chief Justice Paulsen, who awarded the Reserve Bank indemnity costs in a Supreme Court civil ruling.

"I have reached the firm view that this is a case which justifies indemnity costs being awarded to the defendants," the judge stated in his ruling on 4 November.

"In my view the case as it is presented was hopeless. It certainly could never proceed without leave to seek judicial review having been first granted."

The plaintiff PICB, a Chinese-Tongan venture, filed the action against two defendants, NRBT and its Governor Sione Ngongo Kioa, regarding the Reserve Bank decision to revoke its licence on July 26 this year.

However, the Judge stated that, "the plaintiff ought to have been aware of the hopelessness of its position from an early stage and certainly by 11 August 2016 when the matter was discussed in Court. That was before the present applications were filed."

The defendants NRBT and Governor Kioa applied to strike out the action and other orders.

He said even after these applications were made, Mr. Waalkens who acted for the defendants, provided the plaintiff with an opportunity to withdraw and avoid costs consequences, which was ignored.

Lord Chief Justice O. G. Paulsen in a ruling on costs stuck out the statement of claim in its entirety.

Counsel for both parties had consented to the orders.

The plaintiff may seek leave to apply for judicial review of the first defendant's (NRBT) decision on 26 July to revoke its banking license within 21-days. 

He ordered that the defendants be served with that application and once the plaintiff's application has been filed, he will make a timetable for its resolution.

"The defendants are awarded costs on all steps taken in the proceeding since August 2016 on an indemnity basis to be fixed by the Registrar."

Counsel for the plaintiff was Mr S. Tu'utafaiva. Counsel for the first and second defendants were Mr A.H. Waalkens QC and Mr R. Stephenson.

PICB situated at Loumaile Lodge in the Central Business District remained in operation for just over two-years, after its opening on April 7, 2014