Mid-East Sales Ltd v United Engineering And Trading Company (PVT) Ltd & Anor [2014] EWHC 1457 (Comm) (09 May 2014)

Mid-East Sales Ltd v United Engineering And Trading Company (PVT) Ltd & Anor [2014] EWHC 1457 (Comm) (09 May 2014)

The application to set aside service out of the jurisdiction and default judgment was refused because the Islamic Republic of Pakistan failed to act promptly after valid service and did not provide a sufficient explanation for the delay. The court found that there was a good arguable case that the English court had jurisdiction under the contract's special conditions, and that the merits of the defence did not outweigh the lack of promptness. There was no material non-disclosure sufficient to justify setting aside the order for service out.

Citation
[2014] EWHC 1457 (Comm)
Parties
Claimant: Mid-East Sales Limited; First Defendant: United Engineering and Trading Company (PVT) Limited; Second Defendant: The Islamic Republic of Pakistan
Jurisdiction
England and Wales
Judgment Date
09 May 2014
Procedural Posture
Commercial Court Claim / Application to Set Aside Service Out of Jurisdiction and Default Judgment; Extension of Time for Part 11 Application
Outcome
Application to set aside service out of jurisdiction and default judgment refused
Legal Topics
Jurisdiction, Service Out of Jurisdiction, Default Judgment, Forum Non Conveniens, State Immunity, Limitation, Contractual Liability of States
Civil Procedure Commercial Law Private International Law Jurisdiction Service Out of Jurisdiction Default Judgment Forum Non Conveniens State Immunity +2 more

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Parties

Mid-East Sales Limited

Claimant

United Engineering and Trading Company (PVT) Limited

First Defendant

The Islamic Republic of Pakistan

Second Defendant

Procedural Posture

Commercial Court Claim / Application to Set Aside Service Out of Jurisdiction and Default Judgment; Extension of Time for Part 11 Application

Legal Issues

  1. 1 Whether the English court has jurisdiction over the Islamic Republic of Pakistan for a commercial contract claim
  2. 2 Whether service out of the jurisdiction was validly effected
  3. 3 Whether default judgment should be set aside for lack of jurisdiction or other good reason

Ratio Decidendi

The application to set aside service out of the jurisdiction and default judgment was refused because the Islamic Republic of Pakistan failed to act promptly after valid service and did not provide a sufficient explanation for the delay. The court found that there was a good arguable case that the English court had jurisdiction under the contract's special conditions, and that the merits of the defence did not outweigh the lack of promptness. There was no material non-disclosure sufficient to justify setting aside the order for service out.

Court Disposition

Application to set aside service out of jurisdiction and default judgment refused

Orders

  • Default judgment against the Islamic Republic of Pakistan stands
  • Application for extension of time to file Part 11 application refused