The Libyan Investment Authority (LIA) has declared that the imposition of judicial guardianship over its assets can only occur through mutual agreement of the parties involved or by a judicial decree, not by a unilateral order without the presence or representation of the parties concerned.
This clarification came in a statement released today by the Oil Corporation, responding to a unilateral order issued by the Ajdabiya Primary Court to impose judicial guardianship on the assets and funds of the institution.
The LIA emphasized that Libyan law is “clear and explicit and does not allow for any interpretation or discretion regarding the appointment of a judicial guardian,” stating that such appointments should be made through consensus or a court ruling.
The order from the chief of the Ajdabiya Primary Court to appoint a judicial guardianship committee over the institution was not issued as part of a legal lawsuit but rather as a unilateral decree based on a petition without the presence or representation of the parties involved.
Furthermore, the LIA pointed out jurisdictional rules concerning the competent court to handle lawsuits and issue unilateral orders related to the institution as a defendant.
According to articles 56 and 63 of the Libyan Code of Civil Procedure, the North Tripoli Primary Court should have jurisdiction, not the Ajdabiya Primary Court.
The Investment Authority also referenced a directive from the Judicial Bodies Inspection Administration under the Supreme Judicial Council (No. 4 of 2022), directed to the heads of primary courts in Libya.
The directive states that requests for judicial protection of legal rights must be pursued through legal action and not via petition-based orders.
The directive stressed adherence to article 56 of the Libyan Code of Civil Procedure concerning the geographic jurisdiction of the competent court, which should be limited to the court where the main headquarters are located.
On April 16th, the government appointed by the House of Representatives posted a photocopy of the unilateral order from the court, dated April 9th, 2024, on their Facebook page following a request by its president, Osama Hamad.
This decision by the Ajdabiya Primary Court covers the LIA’s balances at the Central Bank of Libya, the Libyan Foreign Bank, all foreign banks, and the entities and companies affiliated with it.
On April 21st, Osama Hamad met with members of the court-appointed judicial guardianship committee at the Prime Minister’s Office in Benghazi to begin implementing the decision.
