trades of shares quoted on the Bermuda Stock Exchange was postponed at Bermuda Supreme Court yesterday, apparently due to an overcrowded court schedule.

The challenge is being made by Bermuda Investment Advisory Services (BIAS), which is run by Mr. Robert Pires, and is being funded by the Bermuda Association of Security Dealers, which Mr. Pires chairs.

BIAS is challenging an interpretation of a section of The Bermuda Stock Exchange Company Act given earlier this year by then Accountant General Mr.

James Hannam, who has since retired.

The section of the Act in dispute is Section 15 (3) which states: "The provisions of the Stamp Duties Act 1976 shall not apply to any instrument which relates to a transfer on sale of a security which is listed on the Exchange.'' Following a request from independent securities dealers, Mr. Hannam interpreted the Act to mean that only transactions of publicly-quoted shares carried out through the Exchange were exempt from the duty.

But Mr. Pires and other independent stock brokers, who are not allowed to trade directly on the Exchange, believe the interpretation may be incorrect.

They believe the exemption should also apply to trades of quoted companies carried out off the Exchange.

If BIAS is successful in overturning Mr. Hannam's ruling, a claim will be made against the Accountant General's office for the return of several thousands of dollars it has collected in duty from transactions of quoted securities carried out off the Exchange since it was incorporated in March of this year.

Lawyer Mr. Peter Martin, of Mello, Hollis, Jones and Martin, who represents BIAS, said: "Under The Stamp Duties Act, a citizen has a right to request the Accountant General to adjudicate on whether stamp duty is payable.

"This action at Bermuda Supreme Court is what is known as an appeal by way of case stated. The procedure is that the Accountant General must prepare a written summary which is then placed before the court for consideration.'' Acting Accountant General Mr. Graham Fenton would not have to appear in person, he said.

"The Accountant General's case will be presented by the Attorney General's chambers,'' he said.

Mr. Martin added: "There are two legal issues here: the first of which is purely a matter of statutory interpretation and the second is the general question of a refund of duty if the case is decided in our favour.'' In order to challenge Mr. Hannam's ruling, Mr. Pires purchased one share in the Bank of Bermuda for $22, paying 22 cents stamp duty.

He said yesterday: "Our contention is that, if a company is listed on the Exchange, it should not matter if a trade of its shares is carried out on the Exchange or off it.'' Independent securities dealers believe they are being treated unfairly since they are not allowed to trade directly on the Exchange, which is run as a closed shop by Bermuda's three banks.

Independent brokers must pay the banks to do their on-Exchange trades for them.

Mr. Pires said: "In an economic sense, anything which slows down or makes inefficient or costly the transfer of capital from people who have excess funds to those who need to borrow for business purposes is detrimental to the efficient running of an economy.

"Obviously, the Government's intention in getting rid of stamp duty for the Exchange was in order to further develop the Exchange and make its process more efficient.

"But somewhere in the process, Government has lost sight of the fact they are causing more problems than they are trying to avoid.''