Great Eastern Shipping Co Ltd v Far East Chartering Ltd and Anr (The "Jag Ravi") - QBD (Comm Ct)(HHJ Mackie QC sitting as a Judge of the High Court) - 27 May 2011

(2011) 824 LMLN 1

Contract - Letter of indemnity - Shipowners delivering cargo without production of bills of lading - Whether shipowners entitled to enforce letter of indemnity issued by receivers - Whether "delivery" under letter of indemnity - Whether receivers entitled to rely on defence of public policy - Contracts (Rights of Third Parties) Act 1999

On 23 July 2008 an Indonesian company (“the shippers”) entered into a sale contract (“the sale contract”) to supply shipments of coal FOB to a Swiss company Visa Comtrade AG (“Visa”). On 10 September 2008 the first defendant (“FEC”), an associated company of Visa, chartered the vessel Jag Ravi to carry one of the shipments, a quantity of 44,104 mt of coal. The charterparty provided: