A case challenging the 1974 free transfer of shares in the National Bank of Malta to the government was yesterday declared not to be time barred by Mr Justice Joseph R Micallef in the First Hall of the Civil Court.

The case was filed in 1977 by NBM Investments Limited against then Prime Minister Dom Mintoff, the Finance Minister of the time and the Bank's Council of Administration.

The court was requested to declare that the transfers of National Bank shares made by Maria Colombus, Alice von Brockdorff and Violet Calleja Gera in 1974 to the government without any consideration were null and void.  NBM Investments Ltd had acquired the litigious rights of these women in 1976 and had contested the share transfers.

On their part the authorities claimed that NBM's claim was barred by the passage of time.

Mr Justice Micallef yesterday declared that NBM had filed an action for the rescission of the share transfers on the basis of defect of consent on the part of the shareholders, on the basis that no payment had been made for the shares, because no stamp duty was paid on the transfer and because the transfer had not taken place by notarial deed.

The law provided that such an action had to be filed within two years from when the defect had occured.  But this period could be extended by the filing of a judicial letter against the defendant.

It resulted that this two year period had been successfully interrupted when a judicial letter was filed against the authorities in 1975 and when the company lodged its claim in 1977.

The court added that this case had been heard in conjunction with other cases of a constitutional nature and it was only now that the so called ordinary pleas, such as that of time barring, could be decided upon.

Mr Justice Micallef concluded by ordering the case to continue next December.