CHANGES to the Race Relations Act, with sweeping implications for British service personnel serving abroad, could result from a case brought by an officer who served at Catterick Garrison.

Although an industrial tribunal dismissed Lt Col Surinder Saggar's case on a legal technicality, his solicitor confirmed this week that the matter was likely to go to appeal.

If the Royal Courts of Justice uphold the medic's appeal, the law could be altered to protect servicemen and woman from racial discrimination and abuse.

Lt Col Saggar, a senior consultant anaesthetist with the Royal Army Medical Corps, hoped a two-year legal battle following alleged racial harassment would end with an industrial tribunal at Thornaby last week.

However, the tribunal dismissed the case after the MoD claimed the Race Relations Act did not apply to British service personnel serving in countries outside the European community. The ministry successfully argued that the case could, therefore, not be heard under UK law.

Lt Col Saggar, a British subject of Indian descent, was on duty in Cyprus in December 1999 when he submitted a redress of grievances against his commanding officer for discrimination and harassment.

He was dissatisfied with the progress of an internal investigation by the MoD and took the case to an industrial tribunal under the Race Relations Act 1976.

The two-day hearing last week ended when the chairman accepted the ministry's submission concerning jurisdiction but the treasury solicitor, acting for the MoD, was instructed to pay his own costs of £11,000 and Lt Col Saggar's costs of £9,000.

Mr David Ward, of Scott Wright's solicitors at Catterick Garrison, who represented Lt Col Saggar, 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."

"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."

Mr Ward and his client, who has served in the army for 20 years, criticised the ministry for failing to raise the issue of jurisdiction until 24 hours before the hearing was due to start.

Lt Col Saggar's wife, Mrs Shobna Saggar, who lives at Brompton-on-Swale, near Richmond, said her husband was very angry following the tribunal's dismissal of the case. He was due to see a psychiatrist yesterday because of the stress.

"Before, he was very happy in the army and had no problems," she said. "Now he is completely stressed and has changed completely. He is often short-tempered but he is determined that justice should be done.