The United Kingdom Privy Council yesterday gave the National Commercial Bank (NCB) the green light to close the accounts of embattled investment club Olint Corporation Ltd.

In allowing the appeal against a Court of Appeal ruling last year July, the Privy Council said it was clearly of the view that the bank's reasons for wanting to close the accounts were valid and that it was entitled to close them.

"This is a very important decision not just for NCB, but for banks and the banking system generally," Michael Hylton, QC, told The Gleaner yesterday.

NCB has already contacted Olint's lawyers to make arrangements to close the accounts, Hylton said.Attorneys-at-law Dave Garcia, Carlene Larmond and Kalaycia Clarke appeared with Hylton. Olint's lawyers did not appear at the Privy Council hearing.

The Privy Council also criticised the practice in Jamaica of judges giving injunctions without notice to defendants when there was no real urgency. The written reasons for allowing the appeal will be given next month.

The Court of Appeal had ruled that Olint's accounts at NCB must not be closed. The court ordered a speedy trial in the civil suit which Olint had filed against NCB. The Court of Appeal had refused NCB leave to appeal against its decision and NCB went to the Privy Council and got special leave to appeal.

NCB had taken the decision to close Olint's account on the grounds that Olint did not comply with certain requests. One of the requests was the filing of an audited financial statement.

Olint has made several allegations against NCB in the suit which it has filed.

The Financial Services Commission served a cease-and-desist order on Olint in March 2006. Olint, which is headed by businessman David Smith, took the matter to the Supreme Court and lost. Olint has appealed against the Supreme Court ruling which was handed down in December 2007.