Griffin Energy Group Pty Limited (Subject to Deed of Company Arrangement) v ICICI Bank Limited [2015] NSWCA 29

Griffin Energy Group Pty Limited (Subject to Deed of Company Arrangement) v ICICI Bank Limited [2015] NSWCA 29

The appellants could not properly deliver a declaration under the letters of credit that the amount claimed was 'due and payable' until 3 March 2015, but the expiry date for timely presentation under the letters was 2 March 2015. Both the Sale Agreement and letters of credit definitions and their interaction did not permit extension beyond 2 March 2015 for presentation. Therefore, the appellants could not claim under the letters, and the appeal and cross-appeal were dismissed.

Parties
First Appellant: Griffin Energy Group Pty Limited (Subject to Deed of Company Arrangement); Second Appellant: Carpenter Mine Management Holdings Pty Limited (Subject to Deed of Company Arrangement); First Respondent: ICICI Bank Limited (Singapore Branch); Second Respondent: Standard Chartered Bank; Third Respondent: National Australia Bank Limited; Fourth Respondent: Lanco Resources Australia Pty Ltd; Fifth Respondent: Lanco International Pte Ltd; Sixth Respondent: Lanco Infratech Limited
Jurisdiction
Australia
Judgment Date
27 February 2015
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed; Cross-appeal dismissed
Legal Topics
Standby Letters of Credit, Interpretation of Business Day, Construction of Contractual Terms
Banking and Finance Contract Law Standby Letters of Credit Interpretation of Business Day Construction of Contractual Terms

Case Brief

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Parties

Griffin Energy Group Pty Limited (Subject to Deed of Company Arrangement)

First Appellant

Carpenter Mine Management Holdings Pty Limited (Subject to Deed of Company Arrangement)

Second Appellant

ICICI Bank Limited (Singapore Branch)

First Respondent

Standard Chartered Bank

Second Respondent

National Australia Bank Limited

Third Respondent

Lanco Resources Australia Pty Ltd

Fourth Respondent

Lanco International Pte Ltd

Fifth Respondent

Lanco Infratech Limited

Sixth Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether the amounts claimed under the letters of credit are 'due and payable'
  2. 2 Whether the letters of credit expired before the beneficiary was entitled to present a draft
  3. 3 Interpretation of 'Business Day' in contract and letters of credit

Ratio Decidendi

The appellants could not properly deliver a declaration under the letters of credit that the amount claimed was 'due and payable' until 3 March 2015, but the expiry date for timely presentation under the letters was 2 March 2015. Both the Sale Agreement and letters of credit definitions and their interaction did not permit extension beyond 2 March 2015 for presentation. Therefore, the appellants could not claim under the letters, and the appeal and cross-appeal were dismissed.

Court Disposition

Appeal dismissed; Cross-appeal dismissed

Orders

  • Appellants pay respondents' costs of the appeal.
  • Cross-appellant pay cross-respondents' costs of the cross-appeal.