Deutsche Bank AG, London Branch v CIMB Bank Berhad

Deutsche Bank AG, London Branch v CIMB Bank Berhad

The issuing bank's obligation to reimburse the confirming bank under UCP 600 Article 7(c) arises only where the confirming bank has actually honoured a complying presentation by making payment to the beneficiary; the confirming bank's statement of payment is not conclusive and the issuing bank is entitled to request further information regarding payment.

Parties
Claimant: Deutsche Bank AG, London Branch; Defendant: CIMB Bank Berhad
Jurisdiction
England and Wales
Judgment Date
25 May 2017
Procedural Posture
Commercial Dispute / Interlocutory Ruling on Request for Further Information
Outcome
IB is entitled to further information regarding payment by CB to the beneficiary under the L/Cs.
Legal Topics
Letters of Credit, Reimbursement Obligations, UCP 600 Interpretation, Documentary Credits
Banking Law Commercial Law Letters of Credit Reimbursement Obligations UCP 600 Interpretation Documentary Credits

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Parties

Deutsche Bank AG, London Branch

Claimant

CIMB Bank Berhad

Defendant

Procedural Posture

Commercial Dispute / Interlocutory Ruling on Request for Further Information

Legal Issues

  1. 1 Whether an issuing bank is entitled to further information regarding payment by the confirming bank under letters of credit
  2. 2 Whether the confirming bank's statement of payment is conclusive for reimbursement purposes under UCP 600 Article 7(c)

Ratio Decidendi

The issuing bank's obligation to reimburse the confirming bank under UCP 600 Article 7(c) arises only where the confirming bank has actually honoured a complying presentation by making payment to the beneficiary; the confirming bank's statement of payment is not conclusive and the issuing bank is entitled to request further information regarding payment.

Court Disposition

IB is entitled to further information regarding payment by CB to the beneficiary under the L/Cs.

Orders

  • The parties should agree the scope of the order for further information.
  • The case will be transferred into the Shorter Trials Scheme.