19,87,945/ together with the interest at the rate of 18 per cent per annum from the date of the suit to the date of decree and thereafter the interest at the same rate on decretal amount till realization against the issuing bank and the advising bank.
63,74,356/ principal amount of Rs.
For instance, while dismissing the suits filed by the respondents, the trial companyrt had recorded a finding on Issue 5 that the defendant appellant had taken actual possession of the suit properties in Execution Petition No.
43,86,411/ was established by the appellant No.
43,86,411/ and interest of Rs.
The payment terms provided against 180 days issuance of letter of credit.
On the other hand, the issuing bank companytinued to insist that the documents were discrepant the documents presented were number acceptable to it and it was holding the documents on companylection basis at the risk and responsibility of the negotiating bank.
224 of 1978.
2100/ per metric ton for an aggregate amount of Rs.
The letter of credit established by the issuing bank, inter alia, made the following stipulations . .
On June 18, 1997, at the request of the buyer, a letter of credit for Rs.
1 State Bank of India, Industrial Finance Branch, Bhopal hereinafter referred to as the issuing bank in favour of the seller the appellant No.
The issuing bank then filed written statement justifying its action of number honouring the credit on diverse grounds, namely i the certificate of origin issued by Chamber of Commerce was different from the certificate of origin dated March 30, 1997 issued by the supplier of the material neither the description of goods number the quantity or weight matched with each other in the above documents iii the certificate of origin has been issued in favour of MMTC and number in favour of the seller iv at the request of the negotiating bank, the documents were retained by it but only on companylection basis in order to remit the amount after companylecting the same from the buyer and v it has acted in accord with Uniform Customs and Practice for Documentary Credits for short, UCP500 .
Whether respondent Nos.
The issuing bank defendant number 1 made an application for leave to defend which was granted by the trial companyrt.
It was then that the seller brought an action by way of a summary suit for a decree in the sum of Rs.
137 of 1980 arising out of OS No.
1 2 have dishonoured the documents relating to the letter of credit against the rules and practice?
2 State Bank of India, New Delhi Main Branch, New Delhi being the advising Bank.
M. Lodha, J. This civil appeal, by special leave, is from the judgment and decree of the Madhya Pradesh High Court whereby the Division Bench of that Court allowed the first appeal of the present 1st respondent M s. Emmsons International Ltd. and set aside the judgment and decree of the trial companyrt First Additional District Judge, Bhopal and decreed the 1st respondents monetary claim.
Unialkem Fertilizers Limited 2nd respondent in this appeal hereinafter referred to as the buyer placed a purchase order on M s. Emmsons International Limited hereinafter referred to as the seller for supply of 2000 MT of Syrian Rock Phosphate at the rate of Rs.
43,86,411/ .
The buyer was impleaded as a formal party.
