National Bank shareholder awarded €1 million for takeover of Valletta property

The Constitutional Court has ordered the payment of €1 million in compensation after it found that the owner of a property on St George’s Square in Valletta, was denied his fundamental rights when the Maltese government took over the property as part of the nationalisation of the National Bank of Malta.

The case was brought successfully by the heirs of Marquis John Scicluna, whose Sciclunas Bank was part of the National Bank conglomerate, against the Attorney General.

The NBM was taken over in 1973 after a run on the bank prompted a controversial nationalisation process instigated by Labour prime minister Dom Mintoff. The bank became Bank of Valletta, which in this case was not found to have any liability.

The case, brought by Scicluna’s heirs, argued that the rental contract on the St George’s Square branch, which property extends to Strait Street, was never renewed with Bank of Valletta when it took over the National Bank.

The Scicluna heirs always refused to accept the rent paid by the bank thereafter.

The property was originally rented for £800 a year, while a court expert valued the branch today used by Bank of Valletta at just €160,000.

The Constitutional Court said that while the takeover of the property, at the time of the run on the NBM, had been lawful and had a legitimate aim, the owners were left without a proportional redress.

The Court found a breach of Article 37 of the Constitution and Article 1 of the first protocol of the European Convention, which guarantees the right to enjoy one’s property.