Industrial & Commercial Bank v Banco Ambrosiano: Forum Non Conveniens & Standby Letters of Credit

In Industrial & Commercial Bank Limited v Banco Ambrosiano Veneto S.P.A., the High Court of Singapore dismissed the defendant's appeal for a stay of proceedings based on forum non conveniens. The plaintiff, Industrial & Commercial Bank Limited, sought to enforce payment under two standby letters of credit (SBLCs) issued by the defendant, Banco Ambrosiano Veneto S.P.A. The defendant argued that Italy was the more appropriate forum due to alleged fraudulent issuance of the SBLCs. Justice Judith Prakash held that Singapore was the more appropriate forum, considering the governing law, non-exclusive jurisdiction clause, and the location of key evidence and witnesses. The court dismissed the appeal.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Singapore court dismisses stay application in SBLC dispute, finding Singapore more appropriate forum despite Italian fraud allegations.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Banco Ambrosiano Veneto S.P.A.DefendantCorporationAppeal allowedLost
Industrial & Commercial Bank LimitedPlaintiffCorporationAppeal dismissedWon

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Yang Ing LoongAllen & Gledhill
Davinder SinghDrew & Napier
Hri KumarDrew & Napier

4. Facts

  1. The plaintiff sought to enforce payment under two standby letters of credit (SBLCs) issued by the defendant.
  2. The defendant alleged the SBLCs were fraudulently issued by its ex-employee.
  3. The SBLCs were governed by Singapore law and contained a non-exclusive jurisdiction clause in favor of Singapore courts.
  4. The defendant commenced proceedings in Italy seeking a declaration that the SBLCs were null and void.
  5. The defendant argued that key evidence and witnesses related to the alleged fraud were located in Italy.
  6. The plaintiff argued that key witnesses and evidence related to the fraud were located in Singapore.

5. Formal Citations

  1. Industrial & Commercial Bank Limited v Banco Ambrosiano Veneto S.P.A., Suit 600167/2000, RA 600236/2000, [2000] SGHC 188

6. Timeline

DateEvent
Standby letter of credit issued in favour of plaintiff
Standby letter of credit issued in favour of plaintiff
Defendant sent faxes alleging fraud
Plaintiff filed action against defendant
Defendant commenced proceedings in Udine, Italy
Application to stay proceedings made
Appeal dismissed

7. Legal Issues

  1. Forum Non Conveniens
    • Outcome: The court held that Singapore was the more appropriate forum.
    • Category: Procedural
    • Related Cases:
      • [1999] 3 SLR 140
  2. Fraudulent Issuance of Standby Letters of Credit
    • Outcome: The court did not make a final determination on the fraud allegation but considered it in the context of the forum non conveniens application.
    • Category: Substantive

8. Remedies Sought

  1. Payment under Standby Letters of Credit

9. Cause of Actions

  • Enforcement of Standby Letters of Credit

10. Practice Areas

  • Commercial Litigation
  • Banking Litigation

11. Industries

  • Banking

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Bambang Sutrisno v Bali International Finance LtdCourt of AppealYes[1999] 3 SLR 140SingaporeCited regarding the weight to be given to a non-exclusive jurisdiction clause.
Ash v Corporation of LloydsCourt of Appeal of the Supreme Court of OntarioYes[1992] 9 OR (3d) 755CanadaCited for the principle that an allegation of fraud does not void a contract ab initio until a final judgment of the court.
Fai General Insurance Co Ltd v Ocean Marine Mutual Protection and Indemnity Association LtdSupreme CourtYescase 50135 of 1996New South WalesCited for the principle that jurisdiction clauses survive the avoidance ab initio of contracts.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Standby Letter of Credit
  • SBLC
  • Forum Non Conveniens
  • Fraud
  • Jurisdiction Clause
  • Governing Law
  • Preventive Seizure

15.2 Keywords

  • Standby Letter of Credit
  • Forum Non Conveniens
  • Fraud
  • Singapore
  • Banking
  • Jurisdiction

17. Areas of Law

Area NameRelevance Score
Standby letters of credit90
Forum Non Conveniens85
Banking and Finance80
Contract Law75
Bank Guarantee70
Guarantee65
Performance Bond60
Fraud and Deceit50
Natural forum40
Anti-suit injunction35
Arbitration30
Estoppel25
Best Efforts Clause20

16. Subjects

  • Banking
  • Civil Procedure
  • Contract Law
  • International Banking