CR Construction (UK) Company Limited v Barclays Bank Plc

CR Construction (UK) Company Limited v Barclays Bank Plc

An interim injunction cannot restrain a bank from paying out under a performance bond absent fraud; the demand complied with the bond's requirements; the bond was not discharged by repudiatory breach; set-off rights do not entitle the applicant to an injunction; balance of convenience and adequacy of damages favour refusal.

Parties
Claimant / Applicant: CR Construction (UK) Company Limited; Defendant / Respondent: Barclays Bank PLC; Intervener: Northern Gateway (FEC) No. 7 Limited
Jurisdiction
England and Wales
Judgment Date
02 April 2026
Procedural Posture
Interim Injunction Application / Ruling on Application for Interim Injunction
Outcome
Application dismissed
Legal Topics
Performance Bonds, Interim Injunctions, Repudiatory Breach, Liquidated Damages, Set Off, Demand Guarantees
Commercial Law Construction Law Banking Law Performance Bonds Interim Injunctions Repudiatory Breach Liquidated Damages Set Off +1 more

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Parties

CR Construction (UK) Company Limited

Claimant / Applicant

Barclays Bank PLC

Defendant / Respondent

Northern Gateway (FEC) No. 7 Limited

Intervener

Procedural Posture

Interim Injunction Application / Ruling on Application for Interim Injunction

Legal Issues

  1. 1 Whether an interim injunction can restrain a bank from paying out under a performance bond absent fraud
  2. 2 Whether the demand under the bond complied with contractual requirements
  3. 3 Whether the bond was discharged by repudiatory breach

Ratio Decidendi

An interim injunction cannot restrain a bank from paying out under a performance bond absent fraud; the demand complied with the bond's requirements; the bond was not discharged by repudiatory breach; set-off rights do not entitle the applicant to an injunction; balance of convenience and adequacy of damages favour refusal.

Court Disposition

Application dismissed

Orders

  • Interim injunction refused
  • No order requiring return of counter-guarantee payment