Geneva  - Libya has filed a civil lawsuit against the Canton of Geneva for arresting last year the son and daughter-in-law of the Libyan leader Muammar al-Qadhafi, the Swiss TSR channel reported Wednesday.

The lawsuit, for over 500,000 francs (437,000 dollars), alleges the manner of the arrest was disproportionate and violated international regulations related to diplomacy.

In July last year, employees at a Geneva hotel called the police to complain about the abuse of two servants at the hands of their foreign bosses, Hannibal al-Qadhafi and his wife.

The couple were held for two days and released back to Libya on a bond of 500,000 dollars.

A Swiss report concluded that the police had not violated any laws, but could have acted more "sensitively" when carrying out the arrest.

Earlier this month, Swiss Foreign Minister Micheline Calmy-Rey insisted again that the Geneva police had committed no wrongs and the country would not pay compensation. Also, the Swiss ambassador to Tripoli left his post last week.

The incident has spread a dark cloud over the relations between Tripoli and Bern, with Libya threatening retaliation for the arrest. So far, flights between the countries have been canceled and two Swiss businessmen were arrested in Libya.

In addition to compensation, Libya has also demanded a formal governmental apology.

Swiss media have termed the row a "diplomatic crisis."

In 1997, another row ensued when the Swiss did not grant a study visa to another son of the Libyan leader, but the argument was solved about a year later. (dpa)