A High Court in Kuala Lumpur today delivered a fresh blow to India's attempt to extradite Ottavio Quattrocchi, an Italian businessman wanted by New Delhi over a sixteen-year-old arms sale corruption scandal.

Justice Augustine Paul ruled against a counsel from the Indian government to hold a watching brief in an appeal hearing to review Monday's lower court's decision to deny the extradition of 64-year-old Quattrocchi.

"I do not think you can appear in court and say you are here to assist the court. There should be no watching brief," he told T Steven, a lawyer for the Indian government.

"As a watching brief party, you can also participate in the proceedings. There can be a conflict of interest. I would like to protect the interest of the attorney-general's office," the judge said.

But deputy public prosecutor Kamarul Hisham Kamaruddin argued that the case was not being represented by two lawyers.

"You (Kamarul) are representing the government of India. Do you want to be watched. The government has entrusted the case in able hands," the judge said.

Review application

Earlier, Quattrocchi's counsel Muhammad Shafee Abdullah opposed New Delhi in holding a watching brief and prosecutor's request to postpone the appeal to another date.

"The attorney general is representing India. So there should not be any watching brief," he said.

Shafee described the judge's ruling as a "blow to the Indian government."

Kamarul also requested postponement as the attorney-general's office was preparing legal documents to allow a counsel for the Indian government, Cyrus Dass, to conduct the review application.

"The fiat is being prepared and Mr Dass is away in Australia," he said.

But Shafee said he had instructed by Quattrocchi to get the case over as soon as possible because his youngest daughter in Milan, Italy was in the final stage of pregnancy and was experiencing health problems.

"Why should we delay the proceedings? It is the liberty of Quattrochi at stake. He has been discharged and freed but has agreed to stay on for the revision process. He plans to leave the country by this weekend.

"His daughter is hospitalised and having a difficult pregnancy," he said.

Speed the essence

Judge Paul then ruled that the review would be held on Thursday and both parties are expected to forward their arguments within a day.

"He (Quattrocchi) has been incarcerated for two years. Speed should be the essence. I do not think we have been fair to him," he said.

All the charges relate to the 1986 scandal in which Swedish arms company Bofors allegedly paid US$14.2 million in bribes to clinch a weapons contract with India worth a total of US$1.3 billion.

India, which has no extradition treaty with Malaysia, began the legal fight for Quattrocchi's extradition two years ago.

India's Central Bureau of Investigation has levelled charges against Quattrocchi as well as the British-based billionaire Hinduja brothers - Srichand, Gopichand and Prakash - and former chief of Bofors, Martin Ardbo.

Quattrocchi, who has been on bail since his arrest in December 2000, has said the extradition attempt was politically motivated. AFP