PUNJAB NATIONAL BANK Vs. INDIAN BANK

JUDGEMENT

(1.) The dispute brought before this Court by means of instant appeal relates to refusal to allow amendment of the plaint, in the suit for money decree filed by the appellant against the respondents in Delhi High Court, which, later on has been transferred to the Debt Recovery Tribunal, Delhi.

(2.) The main contesting respondent is Indian Bank and respondent No. 2, M/s. Indo-Europ Foods Ltd. has been impleaded as pro forma respondent in this appeal. The reference of respondent wherever made in the judgment is for respondent No. 1 - Indian Bank and wherever the word USD has been used it stands for U. S. Dollars.

(3.) As a brief background, to better understand the controversy involved, it may only be indicated that a contract was entered into between Oswal Agro Mills Limited and Indo-Europe Foods Limited of United Kingdom. An amount of USD 6.00 million was advanced to Oswal Agro by Indo-Europe which was liable to be adjusted against bills of Oswal Agro on export of agro products by Oswal Agro to Indo-Europe. Oswal Agro furnished a Bank guarantee of Indian Bank to the extent of USD 6.00 million, in favour of Indo-Europe to cover the advance made by Indo-Europe. The Bank guarantee dated February 3, 1983 was executed by Indian Bank in favour of Indo-Europe Foods Limited, who is the beneficiary of the guarantee. A few relevant clauses of the Bank guarantee are quoted below: