SHAPOORJI PALLONJI & CO PRIVATE LTD V YUMN LTD

[2021] EWHC 862 (Comm), Queen’s Bench Division, Commercial Court, His Honour Judge Pelling QC, sitting as a High Court Judge, 6 April 2021

Arbitration – Interim relief – Performance bond – Interim injunction to require withdrawal of demand under performance bond – Whether injunction should be granted pending appointment of emergency arbitrator – Arbitration Act 1996, section 44 – Senior Courts Act 1981, section 37

Shapoorji Pallonji & Co Private Ltd (SPC) agreed to design, construct, commission and test a power plant in Rwanda for Yumn Ltd (YL). The contracts were governed by English law and provided for ICC arbitration in Singapore. SPC was to provide a bond of 15 per cent of the aggregate contract price. An unconditional performance bond was issued by Standard Chartered Bank (the Bank), under which the Bank was to pay within two days of any demand by YL.