Astro Exito Navegacion S.A. v. Southland Enterprise Co. Ltd. (The Messianiaki Tomi) - Court of Appeal (Lawton, Brandon and Templeman L.JJ.) - 25 September 1981

Contempt of judge’s order no bar to continuing appeal

Astro agreed to sell their vessel Messianiaki Tomi to Southland to be broken up. The purchase price was to be paid by a confirmed irrevocable letter of credit valid until 30 October 1980. The agreement, which was governed by English law and contained a London arbitration clause, provided that five specified documents were to be lodged by the sellers with the confirming bank as stakeholders upon the establishment of the confirmed letter of credit at such bank. In addition, within three business days of the sellers giving notice to the buyers of the ship’s readiness for delivery and presenting a gas-free certificate, the confirming bank was to be instructed by the buyers to release the full letter of credit to the sellers forthwith. These seven documents were to be sufficient evidence to allow the confirming bank to release the letter of credit in full to the sellers.