Sea-Cargo Skips AS v State Bank of India

Sea-Cargo Skips AS v State Bank of India

The demand made by the Buyer did not comply with the express requirements of the refund guarantee as it failed to refer to the specific type of delay (article IV 1(e)) and did not state that the Buyer was entitled to repayment of advance payments. As such, the Bank's liability to pay was not triggered.

Source-derived case information.

Parties
Claimant: SEA-CARGO SKIPS AS; Defendant: STATE BANK OF INDIA
Jurisdiction
England and Wales
Judgment Date
26 June 2013
Procedural Posture
Commercial Claim (refund Guarantee Enforcement) / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Performance Bonds, Refund Guarantees, Demand Compliance, Assignment of Rights
Banking and Finance Law Contract Law Performance Bonds Refund Guarantees Demand Compliance Assignment of Rights

Source-derived case record

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Parties

SEA-CARGO SKIPS AS

Claimant

STATE BANK OF INDIA

Defendant

Procedural Posture

Commercial Claim (refund Guarantee Enforcement) / Judgment After Trial

Legal Issues

  1. 1 Whether the demand made by the Buyer complied with the terms of the refund guarantee and triggered the Bank's liability to pay
  2. 2 Whether the Buyer was entitled to enforce the refund guarantee in light of the assignment to DnB

Ratio Decidendi

The demand made by the Buyer did not comply with the express requirements of the refund guarantee as it failed to refer to the specific type of delay (article IV 1(e)) and did not state that the Buyer was entitled to repayment of advance payments. As such, the Bank's liability to pay was not triggered.

Court Disposition

Claim dismissed

Orders

  • The Buyer’s claim against the Bank pursuant to the demand made on 5 November 2012 is dismissed.