When a letter of credit expires

The New South Wales Supreme Court of Appeal recently had occasion to consider the construction of letters of credit issued by ICICI Bank Limited in favour of Griffin Energy Group Pty Limited (Deed Administrators Appointed) in the case of Griffin Energy Group Pty Ltd (subject to Deed of Company Arrangement) v ICICI Bank Limited [2015] NSWCA 29. While the case did not present any significant issue of legal principle, it demonstrated that:

1. Very careful consideration must be given, at a practical level, to the expiry date accepted by the beneficiary of a letter of credit;
2. Strict compliance with the terms of the letter of credit instrument is required to invoke the issuing bank's commitment to make payment under the letter of credit; and