Chirag Karia QC analyses the legal and commercial limits to the protection provided by letters of indemnity issued by receivers of cargoes and charterers to procure delivery of cargo without production of the original bills of lading. He explores the extent to which the indemnifying party’s obligation in the standard LOI to post security to prevent arrest can be enforced by a mandatory injunction, with particular reference to the Commercial Court’s rulings in the cases arising from the financial collapse of Gulf Petrochem FZC, a large UAE oil and oil products refiner and distributor. Chirag successfully overturned a mandatory injunction requiring his client to post significant security to prevent the arrest of the carrying vessel in a dispute arising from Gulf Petrochem’s collapse.

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Speaker : Chirag Karia QC
Quadrant Chambers