Sightholder Jayam Taking DTC to Court

Jayam NV, an Antwerp headquartered diamond manufacturer and a Diamond Trading Company (DTC) Sightholder, is suing the DTC. Jayam declined to elaborate or provide any details concerning the content of the suit, citing possible contractual limitations.

According to Mahendra (Madhu) Mehta, Jayam approached the DTC ombudsman twice and won in both cases. However, the DTC did not accept the ombudsman’s rulings, and that has led to the lawsuit.

It is understood that Jayam’s grievance is related to its dwindling rough diamond supply from the DTC.

In June 2003, the DTC appointed Dermot Gleeson, former Attorney General of Ireland, as its Ombudsman to Sightholders, applicants and brokers. The appointment of an ombudsman was required by the European Commission as part of its approval of the Supplier of Choice (SoC) program. The EC felt that SoC procedures should be subject to independent, quasi-judicial scrutiny when disputes arise.

When asked to comment on the lawsuit, the DTC said, “It is DTC policy not to comment on matters that are subject to current litigation but we are rigorously defending the case and do not agree that the case has any merit whatsoever.”

The first hearing will take place at London's High Court on January 21, 2007.

Jayam was founded over 100 years ago and has been a DTC Sightholder since 1948. It is a manufacturer of top make princess cuts and rounds and jewelry.