When is an exclusive jurisdiction clause not an exclusive jurisdiction clause, asks James Watthey
- Where a bank has executed against security in a foreign jurisdiction under local “self help” remedies, can it also sue in London?
In Bank of Baroda and Bank of India v Nawany Marine Shipping & others [2016] EWHC 3089 (Comm), [2016] All ER (D) 28 (Dec), the Commercial Court determined a jurisdictional battle which revolved around an important point of principle for the international finance community: where a bank has executed against security in a foreign jurisdiction under local “self help” remedies, can it also sue in London?
At least on these facts and with this jurisdiction clause, the answer was in the affirmative.
The jurisdiction clause
The parties entered into a typical suite of loan and guarantee documents in April 2008, for the purpose of financing the purchase of the vessel “DEVIGLORY I”. A facility agreement and personal guarantees contained the sort of jurisdiction clauses, highly favourable to the banks, that finance lawyers are used to seeing.
Clause 37 of the facility agreement provided
