A SENIOR Army officer is hoping for leave to appeal after a tribunal ruled his allegations of race discrimination and harassment could not be dealt with under British law.

Lieutenant Colonel Surinder Saggar was serving in Cyprus with the Royal Army Medical Corps, in 1999, when he went to his commanding officer with grievances against men serving under him.

Still on sick leave and waiting for a conclusion almost two years later, Lt Col Saggar finally went before a tribunal at Thornaby, Teesside, earlier this month.

But the 63-year-old was stunned when the case was dismissed after Ministry of Defence (MoD) lawyers came up with written evidence which suggested the UK's Race Relations Act did not apply to British soldiers serving on sovereign bases outside the European Community.

There was some consolation when the tribunal chairman ordered the MoD to pay Lt Col Saggar's £9,000 legal bill - but his own solicitor has admitted he was also stunned by the outcome.

David Ward, of Scott Wright's solicitors, in Catterick Garrison, North Yorkshire, said: "It is very, very unusual that someone losing a case has his costs paid by the successful party.

"The chairman was acknowledging the case was dismissed on a legal technicality and that the tribunal had no choice but to do so."

However, Mr Ward warned the ruling had implications for all armed forces personnel as it suggested none were covered by the Race Relations Act once they stepped outside the territorial waters of Britain and the European Community.

"A soldier serving in Germany is covered but not if he serves in Cyprus, Brunei, Bosnia or anywhere else outside the EC. It is a ridiculous state of affairs," he said.

Mr Ward has approached Leeds barrister, Simon Reevell, who is now considering if there are grounds for an appeal.

However, speaking at their home near Richmond in North Yorkshire, yesterday, Lt Col Saggar's family were adamant they would continue to fight their case.

"My husband is an experienced soldier who has served in Bosnia, Ireland, Belize and during the Gulf War," said his wife, Shobna.

"Until this happened, he was happy and had no problems with the Army, but now he is completely stressed and has changed. He is determined to see justice done, although he is very, very angry."

Lt Col Saggar is a senior consultant anaesthetist with the Royal Army Medical Corps, which was based at Catterick Garrison.

A spokesman for the MoD confirmed the tribunal had decided the Race Relations Act did not apply to service personnel on sovereign bases outside the boundaries of the EC.

However, he said no further comment could be made as it could jeopardise the Army's position should Lt Col Saggar's case go to appeal.