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These cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases.  















Banking - From: 1994 To: 1994

This page lists 22 cases, and was prepared on 03 April 2018.

 
Z Bank v DI [1994] 1 Lloyds Rep 656
1994
ChD
Colman J
Contempt of Court, Banking
A company in contempt of court may have acted with a greater or lesser degree of culpability and the court has a discretion to impose punishment commensurate with that culpability, although some penalty is likely to be appropriate unless the contempt has been casual or accidental or unintentional or subsequently purged, but "That, however, does not mean that there are no cases of negligent contempt where a penalty in the form of committal or sequestration would be appropriate. For example, where a contemnor had committed an isolated breach of a Mareva injunction due to the negligence of those responsible for giving appropriate orders to junior staff or perhaps due to having received negligent legal advice and had attempted to purge the contempt by restoring the status quo as far as possible, it might well be quite unnecessary for the protection of the administration of justice for any penalty to be imposed. Where by contrast there has been a very culpable degree of negligence which has resulted in numerous breaches of the Court’s order involving the abstraction of large sums of money, it will often be appropriate to impose not merely a nominal penalty but one which will be recognized as reflecting the serious view taken by the Court of the failure to comply with its orders." The bank being culpable, a sequestration was ordered to support the contempt finding.
1 Citers


 
Supercool Refrigeration and Air Conditioning v Hoverd Industries Ltd [1994] 3 NZLR 300
1994
ChD
Tompkins J
Commonwealth, Banking
(New Zealand) The court noted a greater reluctance in Australia and Ireland than in England to accept the creation of a fixed charge over present and future book debts.
Tompkins J said:" a requirement to pay the proceeds of the book debts into the company's account without any restriction on how the company may use those proceeds does not give effective possession of those proceeds to the Bank. It does not, without more, fasten the charge onto those proceeds. Supercool was free to deal with those proceeds except in the two respects stated, unless and until the BNZ intervened in a manner that would effectively inhibit that freedom. This conclusion is entirely consistent with the circumstances as they existed at the time the debenture was entered into. Supercool was about to take over part of the business of the old Supercool company. It was the clear intention of Supercool and the BNZ that Supercool was then going to trade in the normal way in the course of which it would acquire book and other debts and would be using the proceeds of those debts in the normal course of its business. If it were not able to do so freely, it would not be able to trade. And the BNZ was well aware that that was what Supercool was about to do - the whole object of the finance facility was to enable Supercool to commence business. There was no intervention by the Bank that in any way restricted this freedom to carry on its business until the Bank appointed the receiver on 10 March 1992. It follows that the charge over the book and other debts was a floating charge until it crystallised on that date. It also follows that, for the reasons I have expressed, I do not follow the decision of Slade J in Siebe Gorman."
1 Cites

1 Citers


 
Bank of Baroda v Vysya Bank Limited [1994] 2 Lloyd's Rep 87
1994
ChD
Mance J
Banking, Jurisdiction
An Indian buyer had agreed to purchase a consignment of Latvian steel through its London office. The buyer instructed Vysya to issue a credit in favour of the seller beneficiary. The credit was confirmed by the Bank of Baroda's London office. The seller presented the documents stipulated under the credit to Bank of Baroda and was paid. The Bank of Baroda then sent the documents to Vysya in India claiming reimbursement. Vysya refused to pay and Baroda issued proceedings in England seeking reimbursement. Baroda sought leave to issue the writ and serve it out of the jurisdiction on the grounds, inter alia, that its contract with Vysya was governed by English law. Held: Dealing with that question under Article 4 of the Rome Convention, under a contract between an issuing bank and a confirming bank the performance which is characteristic of the contract is the addition by the confirming bank of its confirmation of the credit and its honouring of the obligations thereby accepted in relation to the beneficiary. That being so, if the presumption in Article 4(2) were applied, the contract between the issuing bank and the confirming bank would be governed by English law being the law of the place of business through which the Bank of Baroda was to effect its performance. "In the present case the application of art. 4(2) would lead to an irregular and subjective position where the governing law of a letter of credit would vary according to whether one was looking at the position of the confirming or the issuing bank. It is of great importance to both beneficiaries and banks concerned in the issue and operation of international letters of credit that there should be clarity and simplicity in such matters. Article 4(5) provides the answer. The Rome Convention was not intended to confuse legal relationships or to disrupt normal expectations in the way which is implicit in Vysya's submissions".
1 Citers


 
In Re New Bullas Trading Ltd Times, 12 January 1994; Ind Summary, 17 January 1994; [1994] 1 BCLC 449
12 Jan 1994
CA
Nourse LJ, Russell LJ and Scott Baker J
Company, Banking, Insolvency
A company debenture, which purported to create a fixed charge on book debts, and a second floating charge over the proceeds when paid, was valid and effective to create a fixed charge. The chargee was not a bank, and therefore no facility could be provided for payment of book debts. However "Just as it is open to contracting parties to provide for a fixed charge on future book debts, so it is open to them to provide that they shall be subject to a fixed charge while they are uncollected and a floating charge on realisation. No authority to the contrary has been cited and, the principle being as spacious as it has been expressed to be, no objection is on that account sustainable. For these reasons, I would accept [Counsel's] second main submission and hold that the charge over book debts of the company, as created by the debenture, was, unless and until their proceeds were paid into the specified account, a valid fixed charge."
1 Cites

1 Citers



 
 In Re Bank of Credit and Commerce International Sa; ChD 22-Mar-1994 - Times, 22 March 1994

 
 Midland Bank Plc v Masey; CA 23-Mar-1994 - Times, 23 March 1994
 
Bradford Savings and Loan Ltd and Another v Barclays Bank Plc Unreported 30 March 1994
30 Mar 1994
ComC
HHJ Kershaw
Banking, Defamation
cw Banking - breach of contract to make loan - refusal to advance money within the terms of the facility contract - obligation not terminated - remoteness, mitigation and quantum of damages - Banking - returned cheques as defamatory statements

 
Zoneheath Association Ltd v China Tianjin International European Community Economic and Tech Co-Op Corporation Times, 08 April 1994; [1994] CLC 348
8 Apr 1994
QBD

Banking
A garnishee order was not available against a foreign account through a UK branch. The English court continued to exercise its discretion against the making of orders in relation to debts with a foreign situs
1 Citers



 
 Depositors' Protection Board v Dalia; HL 20-May-1994 - Times, 20 May 1994; Gazette, 29 June 1994; Independent, 31 May 1994; [1994] 2 AC 367; [1994] 2 AC 367
 
Regina v Hn Treasury and Another, Ex Parte Centro-Com Srl Independent, 03 June 1994
3 Jun 1994
CA

Banking
A decision to freeze funds beyond the sanctions terms was valid but the question was referred to the European Court.


 
 Credit Suisse v Allerdale Borough Council; QBD 17-Jun-1994 - Independent, 17 June 1994
 
Matthew v T M Sutton Ltd Independent, 23 June 1994; Times, 22 June 1994
23 Jun 1994
ChD
Chadwick J
Consumer, Banking
A pawnbroker was liable to pay interest on excess funds recovered in its capacity as trustee. The court ordered an enquiry: ". . . as to what use was made by the defendant of the proceeds of sale and what return was obtained by him on those monies in order to determine the rate of interest to be applied."
1 Citers


 
United Bank of Kuwait Plc v Sahib and Others Times, 07 July 1994; [1995] 2 WLR 94
24 Jun 1994
ChD
Chadwick J
Land, Banking
The customer had deposited title deeds with the bank as security for a loan, but no deed of charge had been executed. Held: The mere deposit of title deeds does not create an equitable charge without more. The 1989 Act operated as a statutory bar to such a claim. The rule that the deposit of title deeds by way of security created an equitable mortgage of the property had not survived the coming into force of the section.
Chadwick J said: "Whether or not the enforcement of the agreement which is to be inferred or presumed from the deposit of the title deeds was properly to be regarded as an example of the operation of the doctrine of part performance, as Lord Selborne LC suggested in Maddison v. Alderson, 8 App. Cas. 467, or as a sui generis exception to the Statute of Frauds 1677 which was outside the proper scope of that doctrine - in that the act of part performance relied upon was not the act of the mortgagee who was seeking to enforce the agreement - there can, in my view, be no doubt that the courts have, consistently, treated the rule that a deposit of title deeds for the purpose of securing a debt operates, without more, as an equitable mortgage or charge as contract - based, and have regarded the deposit as a fact which enabled the contract to be enforced notwithstanding the absence of evidence sufficient to satisfy the Statute of Frauds. It is impossible to distinguish those cases, of which Ex parte Langston, 17 Ves. 227 is an example, in which the court, having inferred from the fact of the deposit an intention to create security, let in oral evidence to identify the scope of the obligation which was to be secured from cases in which there was no evidence beyond the fact of the deposit. In all those cases, the court was concerned to establish, by presumption, inference or evidence, what the parties intended, and then to enforce their common intention as an agreement."
Law of Property (Miscellaneous Provisions) Act 1989 2 - Law of Property Act 1925 53(1)(c)
1 Cites

1 Citers


 
Mumford v Bank of Scotland; Smith v Same Times, 04 August 1994
4 Aug 1994
OHCS

Banking
Bank has no duty in Scotland to wife of borrower securing debt on house.
1 Cites

1 Citers


 
Shah v Bank of England Times, 10 August 1994
10 Aug 1994
ChD

Banking
Proper basis for appeal against Banking tribunal finding of unfitness.
Banking Act 1987 28

 
Bank of Credit and Commers Hong Kong Ltd v Sonali Bank Independent, 20 October 1994; [1995] 1 Lloyds Rep 227
20 Oct 1994
QBD

Banking
There was no basis for a forum switch to Bangladesh of an action as of right under UK law. Under a Letter of Credit it is desirable that the same system of law should govern the co-existing contracts between (a) the issuing bank and the beneficiary, (b) the confirming bank and the beneficiary, (c) the issuing bank and the confirming bank.
1 Citers


 
Robertson v Canadian Imperial Bank of Commerce Times, 16 November 1994; Gazette, 09 November 1994
9 Nov 1994
PC

Banking, Commonwealth
A bank must answer a writ of sub poena ad duces tecum irrespective of whether its client had given consent. Its confidentiality obligation was overridden by the duty to the court.

 
Three Rivers District Council and Others v Governor and Company of Bank of England Times, 06 December 1994; Independent, 13 December 1994; [1996] QB 292
6 Dec 1994
CA
Peter Gibson LJ
Equity, Banking, Litigation Practice
Equitable assignors of a deposit cannot pursue a claim for recovery of the assigned debt without joining in the assignee as a party, though it can sue in its own name.
1 Citers


 
Tsb Bank Plc v Camfield Times, 07 December 1994
7 Dec 1994
CA

Banking
A loan charge was unenforceable against a wife who was told that the loan was limited in amount when it was not.

 
Banco-Exterior v Mann Independent, 08 December 1994
8 Dec 1994
CA

Banking, Undue Influence
A bank's charge was effective after the company's solicitor had explained the charge to a director's wife.

 
Banco Exterior Internacional v Mann and Others Times, 19 December 1994; [1995] 1 All ER 936
19 Dec 1994
CA
Hobhouse LJ
Banking
A charge to secure a husband's borrowings was enforceable where the wife's signature had been taken before a solicitor who had explained it. Hobhouse LJ (dissenting) "It must be remembered that the starting point of this exercise is that the wife's will is being unduly and improperly influenced by the will of her husband. The steps taken have to be directed to freeing her of that influence or, at the least, providing some counterbalance."
1 Citers


 
Universal Import Export Gmbh v Bank of Scotland Times, 21 December 1994
21 Dec 1994
IHCS

Banking
A bank was liable on a draft in favour of a genuine creditor despite misrepresentation.

 
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