TTSJV & Ors v BapCo Refining B.S.C.: drawing the threads together on preventing a call
The fraud test for injuncting a bank from paying out on an On Demand Bond sets a high hurdle. However, the case law on injuncting the beneficiary of an On Demand Bond from making a call under the main construction contract itself has arguably eased the requirements in recent years. A new High Court decision in TTSJV v BapCo Refining B.S.C. has now reconciled the differing authorities and confirms that a seriously arguable breach of the underlying contract will not suffice to obtain an injunction. As Claire King explains, it now clear that such relief is only available where the right to call is clearly precluded by the underlying contract.