Taurus Petroleum Ltd v State Oil Marketing Company of the Ministry of Oil, Republic of Iraq [2013] EWHC 3494 (Comm) (18 November 2013)

Taurus Petroleum Ltd v State Oil Marketing Company of the Ministry of Oil, Republic of Iraq [2013] EWHC 3494 (Comm) (18 November 2013)

The ITPDOs and receivership order must be set aside because the debt under the letters of credit was owed jointly to SOMO and the Central Bank of Iraq, not solely to SOMO, and thus is not attachable under CPR Part 72.2(1). Additionally, the property interest of the Central Bank of Iraq in the debt triggers immunity under s.14(4) of the State Immunity Act 1978, precluding enforcement by third party debt order or receivership. SOMO is a separate entity from the Republic of Iraq, but the immunity of the central bank applies to the relevant property.

Citation
[2013] EWHC 3494 (Comm)
Parties
Claimant/respondent: Taurus Petroleum Limited; Defendant/applicant: State Oil Marketing Company of the Ministry of Oil, Republic of Iraq (SOMO)
Jurisdiction
England and Wales
Judgment Date
18 November 2013
Procedural Posture
Commercial Enforcement of Arbitral Award / Application to Set Aside Interim Third Party Debt Orders and Receivership Order
Outcome
Application granted; ITPDOs and receivership order set aside.
Legal Topics
Enforcement of Arbitral Awards, Letters of Credit, Third Party Debt Orders, State Immunity Act 1978, Situs of Debts, Separate Legal Entity Doctrine
Commercial Law Arbitration Banking Law Conflict of Laws State Immunity Enforcement of Arbitral Awards Letters of Credit Third Party Debt Orders +3 more

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Parties

Taurus Petroleum Limited

Claimant/respondent

State Oil Marketing Company of the Ministry of Oil, Republic of Iraq (SOMO)

Defendant/applicant

Procedural Posture

Commercial Enforcement of Arbitral Award / Application to Set Aside Interim Third Party Debt Orders and Receivership Order

Legal Issues

  1. 1 Whether interim third party debt orders (ITPDOs) and receivership order against sums payable under letters of credit should be set aside
  2. 2 Whether the debt under the letters of credit is owed solely to SOMO or jointly to SOMO and the Central Bank of Iraq (CBI)
  3. 3 Whether the situs of the debt is within the jurisdiction for CPR Part 72

Ratio Decidendi

The ITPDOs and receivership order must be set aside because the debt under the letters of credit was owed jointly to SOMO and the Central Bank of Iraq, not solely to SOMO, and thus is not attachable under CPR Part 72.2(1). Additionally, the property interest of the Central Bank of Iraq in the debt triggers immunity under s.14(4) of the State Immunity Act 1978, precluding enforcement by third party debt order or receivership. SOMO is a separate entity from the Republic of Iraq, but the immunity of the central bank applies to the relevant property.

Court Disposition

Application granted; ITPDOs and receivership order set aside.

Orders

  • Interim third party debt orders against Crédit Agricole set aside.
  • Receivership order set aside.