IN THE HIGH COURT OF THE
HONG KONG SPECIAL ADMINISTRATIVE REGION
COURT OF FIRST INSTANCE
ACTION NO. 19061 OF 1998
Coram : Hon. Godfrey, J.A. in Chambers (sitting as an additional Judge of the Court of First Instance)
Date of hearing : 29 July 1999
Date of judgment : 29 July 1999
J U D G M E N T
1. This is an application by a bank for summary judgment for the amount (USD794,944.27) of a draft supplied by the bank at the requestof the defendant in favour of the third party, and duly honoured by the bank. The bank originally accepted instructions from thedefendant not to honour the draft but subsequently accepted that it was bound to do so. In my judgment the bank was right to do so.
2. By an agreement dated 29 May 1998, the plaintiff agreed with the defendant that, after 30 July 1998, the draft could be releasedto the third party “for its own use and retention absolutely”. When the third party presented the draft so released to it on 7 October1998, the bank was entitled and bound to honour it. The draft was given for good consideration, that is to say, the entry by thethird party into the agreement of 29 May 1998, and the defendant has no defence to the action. I will give judgment for the bankfor the full amount claimed, with interest and costs.
Mr. Peter Duncan, instructed by Messrs. Fred Kan & Co., for the Plaintiff
Mr. Rimsky K.K. Yuen, instructed by Messrs. Lui & Carey, for the Defendant