Mauritius Commercial Bank Ltd v Hestia Holdings Ltd & Anor [2013] EWHC 1328 (Comm) (24 May 2013)

Mauritius Commercial Bank Ltd v Hestia Holdings Ltd & Anor [2013] EWHC 1328 (Comm) (24 May 2013)

The parties prospectively changed the governing law of the agreement, including the jurisdiction clause, to English law. The jurisdiction clause is valid and enforceable under English law, and service of process in England was effective. Even if the jurisdiction clause were invalid, the service of process provision is severable and independently effective. The defendants failed to show that another forum is more appropriate. The English court has jurisdiction and the application to set aside the claim form and stay proceedings is dismissed.

Citation
[2013] EWHC 1328 (Comm)
Parties
Claimant/respondent: Mauritius Commercial Bank Limited; Defendant/applicant: Hestia Holdings Limited; Defendant/applicant: Sujana Universal Industries Limited
Jurisdiction
England and Wales
Judgment Date
24 May 2013
Procedural Posture
Commercial Court Application to Set Aside Claim Form and Stay Proceedings for Lack of Jurisdiction / Interlocutory Application
Outcome
Application dismissed
Legal Topics
Jurisdiction Agreements, Governing Law Clauses, Service of Process, Forum Conveniens, Enforceability of Asymmetric Jurisdiction Clauses
Private International Law Contract Law Banking and Finance Jurisdiction Agreements Governing Law Clauses Service of Process Forum Conveniens Enforceability of Asymmetric Jurisdiction Clauses

Case Brief

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Parties

Mauritius Commercial Bank Limited

Claimant/respondent

Hestia Holdings Limited

Defendant/applicant

Sujana Universal Industries Limited

Defendant/applicant

Procedural Posture

Commercial Court Application to Set Aside Claim Form and Stay Proceedings for Lack of Jurisdiction / Interlocutory Application

Legal Issues

  1. 1 Whether the English court has jurisdiction under the facility agreement and guarantees as amended and restated
  2. 2 Whether the jurisdiction clause in the amended agreement is valid under English or Mauritian law
  3. 3 Whether the service of process provision is severable and effective independently of the jurisdiction clause

Ratio Decidendi

The parties prospectively changed the governing law of the agreement, including the jurisdiction clause, to English law. The jurisdiction clause is valid and enforceable under English law, and service of process in England was effective. Even if the jurisdiction clause were invalid, the service of process provision is severable and independently effective. The defendants failed to show that another forum is more appropriate. The English court has jurisdiction and the application to set aside the claim form and stay proceedings is dismissed.

Court Disposition

Application dismissed

Orders

  • Defendants' application to set aside the claim form and stay proceedings is dismissed.