Performance guarantees and the availability of injunctive relief

In TTSJV WLL and Others v Bapco Refining BSC [2026] EWHC 2047 (TCC) Pepperall J declined to grant an injunction to require the defendant to suspend its demand for payment under a performance guarantee and to restrain the defendant from making any further demand on the performance guarantee, or upon a separate retention bond pending further order of the court or of any emergency arbitrator. In so concluding, he rejected the claimant's submission that a court can grant injunctive relief to prevent the beneficiary of a performance guarantee from making a call where there is a "strongly arguable" case that the beneficiary is not entitled to make the demand under the terms of the underlying contract. It is necessary for a claimant to go further (cases of fraud apart) and "clearly establish" that the beneficiary was precluded from making the call by the terms of the underlying contract. The present case illustrates the narrow scope of the court's jurisdiction to restrain a call for payment under a performance guarantee or bond.