Fortis Bank SA/NV and Anr v Indian Overseas Bank (No 2) - QBD (Com Ct)(Jonathan Hirst QC sitting as a Deputy Judge of the High Court) - 29 March 2011

(2011) 819 LMLN 3

Documentary credits - Issuing bank refusing to pay sellers under letters of credit - Sellers incurring liability to carriers in respect of port storage costs and container demurrage charges - Whether sellers entitled to recover charges from bank as damages for breach of contract or by way of restitution

The second claimant (“Stemcor”) entered into five contracts, incorporating Incoterms 2000, under which they sold containerised scrap to SESA International Ltd (“SESA”). The contracts were made through MSTC Ltd, an Indian governmentowned company. The confirming bank was nominated as the first claimant (“Fortis”) in London. The defendant (“IOB”), upon MSTC’s application, issued five letters of credit in favour of Stemcor, all of which were subject to the Uniform Customs and Practice for Documentary Credits, 2007 Revision (“UCP 600”).