Michele Martone, an 85-year-old Italian, formerly a lawyer in Rome, is threatening to take the Maltese Courts to Europe and to international arbitration over a case that has dragged on for 34-plus years with no solution in sight.

The story goes back more than 34 years. In 1962 an Italian group set up the Malta and Europe Hotel Ltd to build a luxury hotel. This hotel, the Excelsior Hotel, was designed by famous architect Luigi Nervi and was the first building in Malta totally in cement.

The company faced hard times after the collapse of the construction company and the delay of the Maltese government to hand over the corresponding part of the grant promised at the outset. Subsequently, Trust House Forte owned by Sir Charles Forte bought 36 per cent of the shares but Dom Mintoff’s election in 1971 brought about a rift between Sir Charles and Malta.

The company entered into business relations with BICAL which was entrusted with the work of completion of the hotel and its management when it finally opened in 1972. BICAL collapsed in November that year.

Since then, the Italian founders of MEH have been trying to get their money back. They have faced a series of liquidators and controllers and a huge amount of court action sometimes instituted by the BICAL owners.

In 1989 the Martones obtained a warrant of prohibitory injunction to block the sale of the hotel. In 1990 the matter regarding the amounts due was submitted to arbitration but by the next year the Martones had withdrawn their opposition to the sale after coming to an agreement the controller would speed up the arbitration proceedings, and that they would eventually receive the amount due to them.

The finance minister of the time, George Bonello du Puis had guaranteed the obligations of the controller on behalf of the government and had also pledged that the government would allow the proceeds of the sale to be transferred abroad.

Since then, however, nothing has been done: the two sides are still squabbling over what is due or not. The arbitration had been promised within 30 days but it took seven years. And they have not been allowed to take their money abroad.

Dr Martone is now warning that with Malta in the EU and with a recent agreement between Italy and Malta ensuring the protection of Italian investment in Malta he will use all the laws at his disposal to bring to a conclusion this 34-year old dispute.