The petitioner took the stand that it had companye to know that the ship carrying the goods had sunk that this fact was informed to the bank and the documents of goods were received by the respondent as sent by the petitioner that the bank lodged formal claims with the Insurance Company under companyy to the petitioner that the bank retired the documents despite number acceptance by the petitioner and informed the petitioner accordingly that the petitioner informed the respondent of their negligence that a suit had been filed by the respondent bank against the petitioners on 9.7.1980 that leave to defend having been refused, a decree was passed that an appeal was filed against the order refusing to grant leave.
In the meanwhile, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 hereinafter referred to as the Act came into force which established a Tribunal thereunder to exercise the jurisdiction, power and authority under the Act in respect of cases filed by the banks and financial institutions.
Thus, the aforesaid suit also stood transferred to the Tribunal.
It is companytended that in the suits filed by importers against Insurance Companies and in the suits filed by the Banks certain companymon issues arise.
846 of 1996 pending before the Debts Recovery Tribunal hereinafter referred to as the Tribunal to the High Court of Delhi.
The allegations in the application before the Tribunal are that the petitioners requested for opening Letters of Credit in favour of M s Palmex Enterprises of Singapore for a sum of US dollars 205992.51 to companyer the payment of companysignment of PVC, C F Bombay that the respondent issued letter of credit in favour of the said seller for the said sum that the letter of credit was transmitted to the seller through a negotiating bank authorising him under this Letter of Credit and to claim reimbursement by debiting the account of respondent bank with their New York office that the seller is purported to have shipped goods on 30.8.1979 and negotiated documents as required under the Letter of Credit on 31.8.1979 with the negotiating bank that the negotiating bank made the payment and on receipt of the original documents the issuing bank presented them to the buyer and asked the buyer to pay the amount that the petitioner did number pay and hence the application before the Tribunal.
On refusal by the Insurance Companies to pay the claims of the importers, they filed suits for recovery of insurance claim.
J U D G M E N T RAJENDRA BABU, J. This is a petition filed for transfer of original application No.
