Sabah Shipyard (Pakistan) Ltd v Islamic Republic of Pakistan - Court of Appeal (Pill and Waller LJJ and Sir Martin Nourse) - 14 November 2002

Conflict of laws - Guarantee agreement containing waiver of sovereign immunity and non-exclusive jurisdiction clause - Whether anti-suit injunction justified

The claimant ("Sabah") was a Pakistan company owned by a Malaysian parent, and had been incorporated for the sole purpose of entering into certain agreements with the government of Pakistan ("GOP") and a state owned corporation, the Karachi Electrics Supply Corporation Limited ("KESC") in relation to the design, construction, operation and maintenance of a barge-mounted electric generation facility at Karachi. Various agreements were signed, including a guarantee given by the GOP in favour of Sabah whereby the GOP guaranteed KESC’s contractual obligations to Sabah. Clause 1.9.1 of the guarantee provided: