CHINA CONSTRUCTION BANK CORPORATION GUANGZHOU LIWAN SUB-BRANCH v GUANGDONG LANYUE ENERGY DEVELOPMENT CO LTD AND OTHERS

[2017] 1 CMCLR 41

SUPREME PEOPLE'S COURT OF CHINA(CIVIL JUDGMENT)

Before Presiding Judge Liu,Judge Liu,Judge Gao,Assistant Judge Ma,Assistant Judge Qiu,Court Clerk Jiang

Letter of credit dispute - Bank provided finance to Chinese buyer for issuing letter of credit - Buyer issued trust receipt to bank - Buyer failed to pay to bank - Cargo under the letter of credit attached by third party - Buyer insolvent – Bank applied to court for recognition of “ownership right over cargo - Legal nature of bill of lading - Whether holding bill of lading by bank equal to holding ownership right of cargo – Legal nature of trust receipt - Whether trust receipt can create ownership right of bank over cargo – Doctrine of numerus clausus in Chinese property law - Pledge of bill of lading rights - Bank's priority right over sales proceeds from sale of the goods under letter of credit.