DIFC 041/2022, [2022] DIFC CFI 041
Kirtanlal International DMCC V (1) State Bank Of India (DIFC Branch) (2) Jingjiang Special Steel Co. Ltd (3) Hubei Xinyegang Steel Co. Ltd (4) Citic Pacific Special Steel Group Co. Ltd
Type
Case
Court
Dubai International Financial Centre - Court of First Instance
Jurisdiction
Dubai International Financial Centre
Taxonomy
Money Laundering, Lending & Security, Terms, Remedies
Decision date
11 Oct 2023
Panel
JUSTICE SIR JEREMY COOKE
Catchwords
Bank - Right to Terminate Contract - Facilities Contract - Money Laundering - Good Faith - Implied Term - Fraudulent Supplier Documentation
This case involved a company's claim for damages as a result of the breach of an implied term to exercise good faith in a bank facility contract. The bank had an annual right to review and terminate the facility. It decided to not provide new credit facilities following a fraudulent submission of bills of lading by a supplier which had led them to make a money laundering report. There were also claims the bank had given bad references to other banks the company had then sought credit from.