(Construction) - On August 18, the People's Court of Cau Giay District decided to accept a case that Sao Vang Co., Ltd. sued Bank for Investment and Development of Vietnam (BIDV) for the bank’s breach of fiduciary duty, ordering BIDV a payment of both principal and interest that is 9.5 billion for Sao Vang Co., Ltd.
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| BIDV bank loses the lawsuit in a legal dispute over the letters of guarantee. |
The People's Court of Cau Giay District has already opened a first-instance trial of the commercial business case that is a disagreement on the two letters of guarantee between the plaintiff as Sao Vang Co., Ltd. ( 1166 Nguyen Binh Khiem street, Dong Hai ward. , Hai An district, Hai Phong) and the defendant as BIDV (35 Hang Voi, Ly Thai To ward, Hoan Kiem district, Hanoi).
Sao Vang Co., Ltd. sued BIDV for the bank’s fail to meet its contractual obligations, and requested the bank to make a payment of 8 billion VND, according to the terms in the letters of guarantee that are No. 12536000181362 and 12536000182659 issued on May 17 and June 14, 2018.
At the public trial on August 18, the legal representative of Sao Vang Co., Ltd. maintained his opinion to sue BIDV, demanding the bank’s fulfilment of its guarantee duty, and proposed the Court for their fair and impartial adjudication, according to the provisions of law. After the proceedings, in the afternoon of the same day, the Trial Panel declared their support for the lawsuit of Sao Vang Co., Ltd. against BIDV. The court applied the principle of law to insist on the right of Sao Vang Co., Ltd. in requesting advance payment, according to the terms in the letters of guarantee. The consequence of such a declaration is that the court ordered BIDV to pay the amount of 8 billion VND for Sao Vang Co., Ltd.
Regarding the request for payment of late fees, BIDV failed to meet its guarantee obligations as prescribed for the obligor. Hence, the plaintiff requested BIDV to pay the late fees with the advance payment of 8 billion VND at the interest rate of 10 percent per year, according to regulations. Therefore, the amount of late fees that BIDV must pay Sao Vang Co., Ltd. is 1,548,456,000 VND, calculated from September 12, 2018 to the date of the trial. Accordingly, the total amount that BIDV must pay Sao Vang Co., Ltd. is 9,548,456,000 VND. At the same time, the Court also requested BIDV to pay the legal fees as prescribed at 117,548,456 VND.
Previously, in an interview with the Construction E-Newspaper, the representative of Sao Vang Co., Ltd. confirmed the company’s contract with Thanh Long Construction Investment Co., Ltd. to implement a construction work package. On May 17, 2018 and June 14, 2018, BIDV Bank - Dong Do branch issued two letters of advance guarantee that are No.12536000181362 and 12536000182659. Accordingly, the bank unconditionally and irrevocably agreed to not require the Thanh Long Construction Investment Co., Ltd. in its pre-preview and payment to Sao Vang Co., Ltd. as soon as Sao Vang Co., Ltd. had the first in-paper request for the amount of 8 billion VND.
However, from September 2018 up to now, Sao Vang Co., Ltd. has sent many documents requesting BIDV Bank - Dong Do branch to pay the above amounts but did not achieve any resolution. Therefore, Sao Vang Co., Ltd. sued BIDV to the People's Court of Cau Giay district to claim its benefits for the business.
By To Anh
Theo
