Article 466 of the Code of Organization and Civil Procedure lays down that where the head of a government department or the person vested with the legal representation of a body corporate sues for the recovery of a debt due including any licence or other fee, he may make a declaration on oath before the registrar, a judge or a magistrate wherein he is to state the nature of the debt and the name of the debtor and confirm that it is due.

The said declaration is to then be served upon the debtor by means of a judicial act, normally a judicial letter and has the same effect as a final judgment of the competent court unless the debtor, within a period of 20 days, opposes the claim by filing an application demanding that the court declare the claim unfounded.

The head of department, is then entitled to file a reply within a period of 20 days. The court is to appoint the application for hearing and in cases of an urgent nature the court may, upon an application of the creditor or the debtor, shorten any such time limits.

In a decision on October 13, 2022 in the names Malta Gaming Authority vs Doxx Casino Ltd (C-40196), the First Hall of the Civil Court, presided by Mr. Justice Grazio Mercieca, dealt with an application in terms of Article 466.

By means of a judicial letter of September 1, 2020 filed in terms of Article 466 the Authority called upon Doxx Casino Limited for the settlement of the sum of €16,850 representing the fee due for the latter’s licence for 2018. Doxx Casino Limited asked the court to declare that the amount claimed was not due or, if due, was indeed incorrect.

The court observed how a new law, which entered into force on June 30, 2018, raised the licence rate with retroactive effect to 1 January 2018. Between 1 January 2018 and 30 June 2018, existing licence holders had to pay, provisionally, the licences according to the previously applicable rates with the necessary adjustment then to be made by no later than 20 October 2018.

Under the previous system, the licences were paid at a monthly rate; under the new system, at a rate of €25,000 per annum.

In 2018, Doxx Casino Limited ceased its operation. Through an agreement dated 9 April 2018, it sold its licence to Global Gaming Entertainment Group Limited. The licence transfer was approved by the Authority on 31 July 2018.

Doxx Casino Limited and Global Gaming Entertainment Group Limited had agreed to be responsible for the payment of the licence proportionally.

The Authority agreed to this, so much so that it provided both parties with the apportionment rates, but then insisted that Doxx Casino Limited pay its share to Global Gaming Entertainment Group Limited for the latter to settle the entire amount unto the Authority.

From the evidence brought before the court it resulted that whatever was due by Doxx Casino Limited had been transferred to Global Gaming Entertainment Group Limited. This meant that Doxx Casino Limited had complied with all the instructions of the Authority in relation to the payment of its dues.

The court concluded therefore that since Doxx Casino Limited honoured its part of the agreement with the Authority, the Authority could no longer claim the amount due from Doxx Casino Limited because its instructions were for Global Gaming Entertainment Group Limited to settle the amount due in full by after Doxx Casino Limited settles its share to the former.

For these reasons, the court acceded to Doxx Casino Limited's application by declaring the request of the Authority as unfounded in fact and in law, with costs against the Authority.

 Dr Keith A. Borg is a partner at Azzopardi Borg & Associates Advocates.