Bank of India v Svizera Holdings BV [2013] EWHC 4097 (Comm) (20 December 2013)

Bank of India v Svizera Holdings BV [2013] EWHC 4097 (Comm) (20 December 2013)

There was no reliable evidence of any representation or agreement that Barclays would provide a currency swap as a condition precedent. The Original Swap and Restructured Swap are binding on Svizera. Even if such a condition precedent existed, Svizera would be estopped by convention from denying the binding nature of the swaps due to the parties' conduct and shared assumptions.

Citation
[2013] EWHC 4097 (Comm)
Parties
Claimant: Bank Of India; Defendant: Svizera Holdings BV
Jurisdiction
England and Wales
Judgment Date
20 December 2013
Procedural Posture
Commercial Claim / Final Judgment After Trial
Outcome
Claim allowed, Defence and Counterclaim rejected
Legal Topics
Interest Rate Swaps, Condition Precedent, Estoppel by Convention, ISDA Master Agreement
Contract Law Banking Law Financial Derivatives Interest Rate Swaps Condition Precedent Estoppel by Convention ISDA Master Agreement

Case Brief

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Parties

Bank Of India

Claimant

Svizera Holdings BV

Defendant

Procedural Posture

Commercial Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether the Restructured Swap was subject to a condition precedent that Barclays would provide a Currency Swap
  2. 2 Whether the Original Swap and/or Restructured Swap are binding on Svizera
  3. 3 Whether BoI is liable for loss and damage resulting from failure to arrange the Currency Swap

Ratio Decidendi

There was no reliable evidence of any representation or agreement that Barclays would provide a currency swap as a condition precedent. The Original Swap and Restructured Swap are binding on Svizera. Even if such a condition precedent existed, Svizera would be estopped by convention from denying the binding nature of the swaps due to the parties' conduct and shared assumptions.

Court Disposition

Claim allowed, Defence and Counterclaim rejected

Orders

  • Judgment for Bank of India for USD6,299,789.31 plus interest as set out in the Particulars of Claim, interest to be updated to date of judgment