TINNA OVERSEAS LIMITED Vs. KRM INTERNATIONAL LTD

JUDGEMENT

(1.) This appeal is directed against the judgment dated 13.02.2007 whereby the suit of the plaintiff (the appellant herein) for recovery of Rs.6,96,062/- along with interest was dismissed by the learned Additional District Judge.

(2.) The facts of the case, as alleged in the plaint, are as follows:-

(3.) On 07.07.2000, at the instance of the plaintiff, the defendant No.2-Bank issued a Letter of Credit in favour of the defendant No.1 of the value of Rs.9,36,600/- for the supply of 12,000 sq.ft. of leather. By an amendment dated 15.07.2000 to the same, the value of the said Letter of Credit was enhanced to Rs.18,73,200 for the supply of 24,000 sq.ft. of leather. Among other documents, the defendant No.1, for the negotiation of the said Letter of Credit was required to annex a Certificate of Quality Specification issued by the plaintiff or its representatives. The said Certificate of Quality Specification was required to ensure that the goods supplied by the defendant No.1 were as per the ordered specifications. Payment was to be released to the defendant No.1 only on certification by the plaintiff that the goods were as per the specifications. Thus according to the plaintiff, there was no obligation under the said Letter of Credit to make payment for any sub-standard goods, which were not as per the specifications.