GLOBAL TRUST BANK LIMITED Vs. FARGO FREIGHT LIMITED

JUDGEMENT

(1.) In FAO(OS)No265/2000 the appellant has prayed for setting the orders passed on 16/3/2000 and 21/7/2000 by learned Single Judge in Suit No.1746/96. In FAO(OS) No.268/2000, the prayer made is to set aside the order passed on 21/7/2000 by learned Single Judge in OMP No.263/98.

(2.) Appellant in both the appeals is Global Trust Bank Ltd. Fargo Freight Ltd. Ireland is respondent No,1 in PACK OS) No.265/2000 and respondent. No.3 in FAO(OS) No.268/2000; Commodities Exchange? Corporation Ltd. is respondent No.2 in both the appeal's and Bank of Rajasthan Ltd. is respondent No.3 in FAO(OS) No.265/2000 and respondent No.3 - in FAO(OS) No.268/2000. Reference is being in this judgment fco the parties as are arrayed in FAO(QS) No.265/2000.

(3.) Respondent: No.1 a company incorporated in Ireland is engaged in the business of shipping. Respondent No.2, formerly known as Electic Export.5 Ltd., is a company incorporated under the Companies Act, 1956 and is engaged in the business of import/export of Foodgrain commodities etc. Respondent No.3 is the bankers of respondent No.1. On 11.3.1996 a Charter Party Agreement was entered into between respondent No.1 and respondent No.2. Under the terms of the agreement,, ship of respondent No.1 was contracted to load about 14,000 MT bulk wheat belonging to respondent No. 2 from Jakhau (Gujarat) on or about, 15/3/1996 and to carry and discharge the same at Kuwait. It appears that on 16/3/1996 the ship arrived at Jakhau (Gujarat). After loading on 16/5/1996 the vessel sailed for Kuwait For the freight amount and demurrage, respondent No.1 raised invoice. Respondent No.2 appears to have raised some dispute but later on is alleged to have admitted its liability to respondent No.1. The appellant at the request of respondent No.2 opened Letter of Credit bearing No.CA/FLC/011/96 dated 20/5/1996 up to an aggregate,amount of US $ 267.000.00 in favour of respondent. No.1. The expiry date of letter of credit was submitted as 15/8/1996.