DUBAI ISLAMIC BANK PJSC V PSI ENERGY HOLDING CO BSC AND ORS

[2011] EWHC 2718 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 24 October 2011

Contract - Guarantee - Whether surety discharged by creditor causing default - Estoppel by convention - Summary judgment

The defendants had assumed guarantee obligations in respect of a restructuring agreement made with the claimant bank upon the discovery of a receivables fraud perpetrated upon the bank. The restructuring agreement involved the repayment of funds and also provided the bank with security over a leasehold interest in Dubai known as Plantation. The claimant bank now sought summary judgment in respect of liabilities arising.