Shinetec (Australia) Pty Ltd v The Gosford Pty Ltd [2024] NSWCA 174

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Shinetec (Australia) Pty Ltd v The Gosford Pty Ltd [2024] NSWCA 174 Hearing dates: 11-12 July 2024 Decision date: 23 July 2024 Before: Ward ACJ; Leeming JA; Kirk JA Decision: 1. Dismiss the notice of motion seeking to adduce fresh evidence filed 19 April 2024. 2. Appeal dismissed with costs. Catchwords: BANKING AND FINANCE – standby letter of credit issued by Chinese bank to secure lender's/builder's obligations under construction contract – receivers appointed to beneficiary – receivers made demand on standby letter of credit on behalf of beneficiary – payment by issuing bank stopped by order of Chinese court – whether breach of contract by beneficiary with lender/builder rendered demand invalid – obligations of issuing bank independent of contract between lender/builder and beneficiary – standby letter of credit subject to Rules on International Standby Practices ISP 98 – whether appointment of receivers engaged rule concerning transfer by operation of law – whether interlocutory order made by Chinese court preventing payment a bar to entry of judgment – whether parallel proceedings in Australia and China an abuse of process Legislation Cited: Building and Construction Industry Security of Payment Act 1999 (NSW) Civil Procedure Act 2005 (NSW), s 58 Corporations Act 2001 (Cth), ss 420, 428 Environmental Planning and Assessment Act 1979 (NSW), s 4.55 Evidence Act 1995 (NSW), s 140 Uniform Civil Procedure Rules 2005 (NSW), r 7.1 Cases Cited: Australian Mutual Provident Society v George Myers & Co Ltd (in liq) (1931) 47 CLR 65; [1931] HCA 31 BS Stillwell & Co Pty Ltd v Budget Rent-A-Car System Pty Ltd [1990] VR 589 Carron Iron Company v Maclaren (1955) 5 HL Cas 416; 10 ER 961 Clough Engineering Ltd v Oil & Natural Gas Corporation Ltd [2008] FCAFC 136; 249 ALR 458 Collier v Country Women's Association of NSW [2017] NSWSC 1573 CSR Ltd v Cigna Insurance Australia Ltd (1997) 189 CLR 345; [1997] HCA 33 Dedert Corporation v United Dalby Bio-Refinery Pty Ltd (2017) 59 VR 607; [2017] VSCA 368 Eastone Mining Pty Ltd v Eastone Holding Pty Ltd [2019] NSWSC 1850; 142 ACSR 38 Gaskell v Gosling [1896] 1 QB 669 Gosling v Gaskell [1897] AC 575 Griffin Energy Group Pty Ltd (Subject to Deed of Company Arrangement) v ICICI Bank Ltd [2015] NSWCA 29; 317 ALR 395 House v The King (1936) 55 CLR 499; [1936] HCA 40 In re Metropolitan Amalgamated Estates Ltd; Fairweather v Metropolitan Amalgamated Estates Ltd [1912] 2 Ch 497 Kawasaki Heavy Industries Ltd v Laing O'Rourke Australia Construction Pty Ltd (2017) 96 NSWLR 329; [2017] NSWCA 291 Kell & Rigby Holdings Pty Ltd v Lindsay Bennelong Developments Pty Ltd [2010] NSWSC 777 Massoud v Nationwide News Pty Ltd; Massoud v Fox Sports Australia Pty Ltd (2022) 109 NSWLR 468; [2022] NSWCA 150 Merton v Bank of Queensland Ltd [2013] NSWCA 68 Minister for Local Government v Blue Mountains City Council (2018) 97 NSWLR 1132; [2018] NSWCA 133 Odtojan v Condon [2023] NSWCA 129 PPK Willoughby Pty Ltd v Baird [2021] NSWCA 312 Resort Hotels Management Pty Ltd v Resort Hotels of Australia Pty Ltd (1991) 22 NSWLR 730 Sheahan v Carrier Air Conditioning Pty Ltd (1997) 189 CLR 407; [1997] HCA 37 Shinetec (Australia) Pty Ltd v The Gosford Pty Ltd; The Gosford Pty Ltd v Bank of China Ltd [2022] NSWSC 59 Shinetec (Australia) Pty Ltd v The Gosford Pty Ltd; The Gosford Pty Ltd v Bank of China Ltd (No 2) [2023] NSWSC 1405 Shinetec (Australia) Pty Ltd v The Gosford Pty Ltd; The Gosford Pty Ltd v Bank of China Ltd (No 3) [2023] NSWSC 1596 Shun Sheng Pty Ltd v Lei (No 2) [2023] NSWSC 1623 Talifero v Asbestos Injuries Compensation Fund Ltd as Trustee for the Asbestos Injuries Compensation Fund (2018) 98 NSWLR 1107; [2018] NSWCA 227 Tavcol v Valbeet [2014] NSWSC 1563 United City Merchants (Investments) Ltd v Royal Bank of Canada [1983] 1 AC 168 Universal Publishers Pty Ltd v Australian Executor Trustees Ltd [2013] NSWSC 2021 Wolfenden v International Theme Park Pty Ltd (trading as Wonderland) [2008] NSWCA 78 Wood Hall Ltd v The Pipeline Authority (1979) 141 CLR 443; [1979] HCA 21 Young v Cooke [2017] NSWCA 33 Texts Cited: P Elligner and D Neo, The Law and Practice of Documentary Letters of Credit (Hart Publishing, 2010) Category: Principal judgment Parties: Shinetec (Australia) Pty Ltd (First Appellant) Shanxi Construction Investment Group Co Ltd (Second Appellant) The Gosford Pty Ltd (First Respondent) David Anthony Hurst (Second Respondent) David Henry Sampson (Third Respondent) Macquarie Bank Ltd (Fourth Respondent) (submitting appearance) Bank of China Ltd (Fifth Respondent) Representation: Counsel: F Assaf SC, M Karam, B Smith (Appellants) JT Gleeson SC, RJ May (First, Second and Third Respondents) J Kay Hoyle SC, T Scott (Fifth Respondent)