monetary damages after he had demonstrated how the Supreme Court was "materially misled'' when a local law firm in consultation with two provisional liquidators petitioned the court two months ago.

With the complex legal wrangle expected to continue before Puisne Judge the Hon. Mr. Justice Ground for the remainder of this week, Mr. Hall claimed that Kempe and Whittle partner, Mr. Charles Kempe Jr. and his accountant colleague, Mr. Gil Tucker, allowed themselves to continue as provisional liquidators when they knew they had no authority to do so.

The lawyer said that they had a duty to tell the court that Televest did not want the law firm, Appleby, Spurling and Kempe, to petition the court on their behalf.

He declared that there had never been a default by Televest or Telecheck holdings of its obligations. "The danger to the assets of Televest came from the appointment of provisional liquidators, and was further exacerbated by their actions,'' said Mr. Hall.

It was through affidavits and other information that Mr. Hall disclosed how Telecheck had suffered some setbacks, as a result of the failed financial promises of Sarnia Mutual Investments, the overseas company whose liquidation sparked trouble for the Televest group.

"Telecheck was coming out of a difficult period,'' he said. "It was on its way to great successes as a result of re-capitalisation. There was a joint venture set to take off with the Bermuda Commercial Bank that was immediately stopped when this action was taken.'' Mr. Hall also revealed affidavit information that showed that the company was on the verge of new business in the Caribbean involving computer software, new services involving local Visa and Mastercards, and initial contact with Western Union about a Bermuda Commercial Bank connection that would have explored the possibility of bringing the worldwide service to Bermuda. There were, however, regulatory problems locally that made the provision of the cash transfer service difficult.

It was through the affidavits, too, that it was revealed the belief by Televest directors that the two large Bermuda banks had been against them succeeding from the start.

Throughout a lengthy day in court, Mr. Hall portrayed the company directors as cooperative businessmen, whose company lawyer Mr. Ernest Morrison, from Hallett, Whitney and Patton, was never told by Appleby, Spurling and Kempe lawyers about meetings that would require his attention.

He said that it was "a three-day nightmare'' in December for his clients as events unfolded before them that were out of their control.

The Televest lawyer described the mid-December petition to the Supreme Court in this matter as "laughable and shameful'', which led to lawyer for the liquidators Mr. Alan Dunch complaining that Mr. Hall's comments "were unseemly, unprofessional and unnecessary''.

Mr. Justice Ground told Mr. Hall that such words had no place in a court of law, and that he had reflected in his notes Mr. Hall's point that he felt the court petition had been "manifestly inadequate''.