F - Fraud exception
9/9/14
ALTERNATIVE POWER SOLUTION LTD v CENTRAL ELECTRICITY BOARD [2014] UKPC 31, [2015] 1 WLR 697
On an interim application to restrain a bank from paying on a letter of credit on the basis of fraud, the test is whether it is seriously arguable that the only realistic inference is that the beneficiary could not honestly believe in the validity of the demand, and the bank is aware of that fact. This is significantly more stringent than the test of whether there is a good arguable case or serious issue to be tried. On the facts the test was not satisfied.
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