Tchenguiz duo get green light to sue

The Tchenguiz brothers, property magnates who were briefly arrested in a fraud inquiry into Iceland's Kaupthing Bank, have won the right to pursue a claim of more than £1bn in damages from the failed bank.

The High Court yesterday rejected an application by Kaupthing to dismiss the claim on the technicality that it did not have the jurisdiction to hear it.

The brothers, Vincent and Robert, above, issued a writ against the bank last July, alleging they had suffered "massive losses" because its failure to recognise their claim "gravely compromised" their relationship with other financing parties.

Vincent Tchenguiz yesterday said the claimants would "vigorously" pursue compensation.

The brothers were among nine people arrested last week as part of an investigation co-ordinated by the Serious Fraud Office.

The Tchenguiz brothers, who have denied any wrongdoing, were released without charge.