Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Netting of obligations
  • 10 Mar 2000

    BHAGWAN SHANKARDAS MOORJANI v. THE KA WAH BANK LTD.

    Citation
    BHAGWAN SHANKARDAS MOORJANI v. THE KA WAH BANK LTD.
    Court
    Court of First Instance
    Case number
    HCA16440/1998

    The correct construction of the Master Agreement is that floating losses on the value date constitute amounts due from the customer which must be paid and that the bank is entitled to apply cash margin and to require additional cash margin; therefore the bank validly terminated/squared off the plaintiff's JPY positions for failure to pay, and the plaintiff's contrary construction (that only 5% of the then contract value need be maintained without first covering floating losses) is legally incorrect.