Read the full judgment text of CACV 208/2006 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 21 June 2006 before Hon Rogers VP.
Civil procedure — interlocutory injunction — stay application — letter of credit — fraud — Mareva injunction — international commercial transactions — The plaintiff sought to stay discharge of an interlocutory injunction restraining payment under a letter of credit issued for iron ore shipment from India to Shanghai. The plaintiff alleged fraud and sought injunction to prevent defendant access to proceeds. The court found no fraud in presentation and negotiation of the letter of credit documents. The claim for injunction restraining defendant’s use of proceeds was refused due to insufficient grounds and because such injunction would improperly interfere with overseas bank transactions. The stay of the discharge of injunction was refused to preserve the integrity of international letters of credit, vital for Hong Kong's financial services and trade. The court commended the reasoning of the recorder below but declined to grant a stay pending appeal.
Legal issues: Fraud in presentation and negotiation of letter of credit · Granting injunction to restrain defendant from handling letter of credit proceeds · Whether to grant stay of discharge of interlocutory injunction
Outcome: Application for stay of discharge of injunction refused.
Cited by 1 case