DOOSAN BABCOCK LTD V COMERCIALIZADORA DE EQUIPOS Y MATERIALES MABE LIMITADA

[2013] EWHC 3010 (TCC), Queen's Bench Division, Technology and Construction Court, Mr Justice Edwards-Stuart, 11 October 2013

Guarantee - Application for interim injunction - Threshold test for interim injunction for bond and letter of credit cases - Arbitration Act 1996, section 44(3)

The judge had granted the claimant an interim injunction to restrain the respondent/defendant ("MABE") from making demands for payment under two performance guarantees. The guarantees were "on demand" guarantees and so the banks concerned were required to pay on receipt of a demand by MABE that complies with the requirements of the guarantees. The claimant had agreed to supply two boilers for a power plant in Brazil. The claimant's case was that any demand under the performance guarantees would be in breach of the contract in respect of which the guarantees were provided because MABE had wrongfully failed to issue Taking-Over Certificates, which would have resulted in the expiry of the guarantees. MABE's case was that it was not obliged to issue certificates for temporary usage of the plants, and it had a claim for damages for defects in the boilers.