GUR Corporation v. The Trust Bank of Africa and The Government of The Republic of Ciskei - Court of Appeal (Sir John Donaldson M.R., Nourse and Glidewell L.JJ.) - 22 July 1986

Locus standi of subordinate state

GUR contracted with The Government of The Republic of Ciskei (“Ciskei”) to build a hospital and two schools in Ciskei, South Africa. In connection with the building contract, Trust Bank of Africa (“the Bank”) issued a guarantee limited to U.S. $375,000 in favour of the Department of Public Works of The Republic of Ciskei (“the Department”). The Bank required and obtained from GUR a counter-guarantee and a deposit of U.S. $300,000.