GUANGDONG SILK GROUP FORTUNE CO., LTD v. CENTOPERCENTO LTD

Parties

Procedural Posture

Commercial Contract/debt (summary Judgment Appeal) / Appeal From Master's Summary Judgment Order; Decision on Conditional Leave to Defend

Legal Issues

1. 1 Whether the defendant has an arguable bona fide defence such that unconditional leave to defend should be granted on a summary judgment application
2. 2 Whether the contractual relationship in respect of the goods was between the defendant and the factories or between the defendant and the plaintiff (agency/intermediary issue)
3. 3 Whether a written or oral settlement agreement discharged the plaintiff's claim

Ratio Decidendi

The court held the defendant raised a bona fide and arguable defence supported by documentary and circumstantial evidence (emails, debit notes, written agreement, prior dealings) such that the defence was not a sham or merely shadowy; accordingly the conditional payment into court was unjustified and the defendant was entitled to unconditional leave to defend; the appeal was allowed and costs were reserved in favour of the defendant.

Court Disposition

Appeal allowed; conditional payment requirement set aside; defendant granted unconditional leave to defend; costs ordered nisi in favour of defendant with certificate for counsel.

Orders

• Appeal allowed
• Defendant permitted to defend the claim without payment into court