Greenland Bank Ltd v American Express Bank Ltd, Court of Appeal - Chancery Division, March 06, 2008, [2008] EWHC 421 (Ch)
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Greenland Bank Ltd v American Express Bank Ltd, Court of Appeal - Chancery Division, March 06, 2008, [2008] EWHC 421 (Ch)
Neutral Citation Number: [2008] EWHC 421 (Ch)
Case No: HC06C02455IN THE HIGH COURT OF JUSTICECHANCERY DIVISIONRoyal Courts of JusticeStrand, London, WC2A 2LLDate: 06/03/2008Before:THE HONORABLE MR JUSTICE EVANS-LOMBE- - - - - - - - - - - - - - - - - - - - -Between :- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - -Gordon Bennett (instructed by Edwin Coe) for the ClaimantDavid Wolfson (instructed by Mishcon de Reya) for the DefendantHearing dates: 11/2/08-20/2/08- - - - - - - - - - - - - - - - - - - - -JudgmentMr Justice Evans-Lombe: 1. The Claimant, Greenland Bank Limited (``Greenland'') was, until it was placed in liquidation, carrying on a banking business from Kampala in Uganda. Westmont Power (Bangladesh) PVT Limited (``Westmont'') was a customer of Greenland. On 10th June 1998 Westmont entered into a Power Purchase Contract (``the Contract'') for the supply of electricity to Bangladesh Power Development Board (``Bangladesh Power'') for a period of 15 years concluding on 10th June 2013. It was a term of the Contract that Westmont would provide a performance bond (``the Bond'') limited to the sum of US$1.5 million capable of being replenished if a claim is made, by a bank of appropriate standing, to secure due performance by Westmont of the terms of the Contract for the benefit of Bangladesh Power. Greenland did not have that standing and accordingly approached the Defendants, American Express Bank Limited (``Amex''), with which it had a relationship going back to June 1993, to provide such a performance bond in its place upon terms, including a cash deposit of $1.5 million with Amex by way of cash collateral, and the payment of an annual commission of 1% of the sum secured by the performance bond. On 23rd June 1998, with money provided through Westmont from a financier (``the Financier''), Greenland deposited US $1.5 million at a London branch of Amex. It is Greenland's case that the deposit of $1.5 million has become repayable to it because, at least by June 2001, the performance bond, by reason of the failure to renew it on due date in accordance with its provisions, had ceased to have effect. It is Amex's case that by reason, in particular, of the judgment of the District Court of the Joint District Judge Number 2 Dhaka (`...See the full content of this document
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