Mid-East Sales Ltd v United Engineering And Trading Company (PVT) Ltd & Anor

Mid-East Sales Ltd v United Engineering And Trading Company (PVT) Ltd & Anor

The application to set aside service out of jurisdiction and the order permitting service is dismissed due to substantial and tactical delay by IRP, lack of persuasive explanation, and the universal application of the new CPR regime requiring promptness and compliance. However, the default judgment is set aside on terms, as IRP has arguable defences and the issue of immunity/liability should be resolved on the balance of probabilities.

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 Claim / Ruling on Applications to Set Aside Service, Stay for Forum Non Conveniens, and Set Aside Default Judgment
Outcome
Default judgment set aside on terms; all other applications by IRP dismissed.
Legal Topics
Jurisdiction, State Immunity, Forum Non Conveniens, Default Judgment, Material Non Disclosure, Limitation, Contractual Liability
Civil Procedure International Commercial Law Jurisdiction State Immunity Forum Non Conveniens Default Judgment Material Non Disclosure Limitation +1 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 Claim / Ruling on Applications to Set Aside Service, Stay for Forum Non Conveniens, and Set Aside Default Judgment

Legal Issues

  1. 1 Whether service out of jurisdiction and default judgment should be set aside for lack of jurisdiction, forum non conveniens, or material non-disclosure
  2. 2 Whether the Islamic Republic of Pakistan is a proper defendant and liable under the contract
  3. 3 Whether limitation bars the claim

Ratio Decidendi

The application to set aside service out of jurisdiction and the order permitting service is dismissed due to substantial and tactical delay by IRP, lack of persuasive explanation, and the universal application of the new CPR regime requiring promptness and compliance. However, the default judgment is set aside on terms, as IRP has arguable defences and the issue of immunity/liability should be resolved on the balance of probabilities.

Court Disposition

Default judgment set aside on terms; all other applications by IRP dismissed.

Orders

  • Default judgment against IRP set aside; IRP permitted to defend and file defence.
  • Continuation of security for full amount caught by interim Third Party Debt Orders until further order.