Essar Shipping Ltd v Bank of China Ltd [2015] EWHC 3266 (Comm) (13 November 2015)

Essar Shipping Ltd v Bank of China Ltd [2015] EWHC 3266 (Comm) (13 November 2015)

The application for an anti-suit injunction was refused because ESL failed to act promptly in seeking relief, waiting over nine months after the Chinese proceedings commenced and seven months after its jurisdiction challenge in China. This lack of promptness was inconsistent with established principles requiring timely action for such equitable relief, and no sufficient justification for the delay was shown. The declaration as to the existence of the arbitration agreement was granted as it was not disputed.

Citation
[2015] EWHC 3266 (Comm)
Parties
Applicant/claimant: Essar Shipping Ltd; Respondent/defendant: Bank of China Ltd
Jurisdiction
England and Wales
Judgment Date
13 November 2015
Procedural Posture
Arbitration Claim (application for Anti Suit Injunction and Declaration) / Judgment on Application for Anti Suit Injunction and Declaration
Outcome
Declaration granted; anti-suit injunction refused; damages claim not determined.
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Promptness in Seeking Equitable Relief, Jurisdiction Challenges, Damages for Breach of Arbitration Agreement
Commercial Law Arbitration Conflict of Laws Anti Suit Injunctions Arbitration Agreements Promptness in Seeking Equitable Relief Jurisdiction Challenges Damages for Breach of Arbitration Agreement

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Parties

Essar Shipping Ltd

Applicant/claimant

Bank of China Ltd

Respondent/defendant

Procedural Posture

Arbitration Claim (application for Anti Suit Injunction and Declaration) / Judgment on Application for Anti Suit Injunction and Declaration

Legal Issues

  1. 1 Whether the applicant is entitled to an anti-suit injunction restraining the respondent from pursuing proceedings in China in breach of a London arbitration agreement
  2. 2 Whether the application for an anti-suit injunction was made promptly
  3. 3 Whether the applicant is entitled to a declaration as to the existence of the arbitration agreement

Ratio Decidendi

The application for an anti-suit injunction was refused because ESL failed to act promptly in seeking relief, waiting over nine months after the Chinese proceedings commenced and seven months after its jurisdiction challenge in China. This lack of promptness was inconsistent with established principles requiring timely action for such equitable relief, and no sufficient justification for the delay was shown. The declaration as to the existence of the arbitration agreement was granted as it was not disputed.

Court Disposition

Declaration granted; anti-suit injunction refused; damages claim not determined.

Orders

  • Declaration that the arbitration agreement was incorporated in the bill of lading contract is granted.
  • Application for anti-suit injunction is refused.