Fortis Bank S.A./N.V and another V Indian Overseas Bank [2010] EWHC 84 (Comm), [2010] All ER (D) 189 (Jan)
Queen’s Bench Division, Commercial Court, Hamblen J, 28 January 2010
Article 16 of the Uniform Customs Practice of Documentary Credits 600 (UCP 600) imposes an obligation on an issuing bank to act in accordance with any disposal statement it has made; a term as to reasonable promptness may be implied into Art 16.
Timothy Young QC and Malcolm Jarvis (instructed by DLA Piper UK LLP) for the claimants. Sara Cockerill (instructed by Holman Fenwick Willan LLP) for the defendant.
The first claimant was the nominated bank in respect of five letters of credit issued by the defendant bank for the benefit of the second claimant company. Subsequently the company made a number of drawings under each of the letters of credit. It presented documents to the first claimant in respect of drawings under three letters.
The first claimant honoured the documents and forwarded them to the defendant for reimbursement. The company then presented documents directly to the defendant in respect of drawings under the other two letters.
