BUSINESS BANK Vs. UNION OF INDIA

JUDGEMENT

(1.) The present plaintiff (M/s Business Bank) is an investment bank converted as such with the approval of the Central Bank of Jordan on 23.10.1990. Earlier it was a public shareholding Company under the name "National General Investments Company Ltd." established some time in the year 1980.

(2.) In November 1981, the plaintiff Bank was approved for conversion into a Commercial Bank. The plaintiff bank claims to be the successor-in-interest of another bank Bank of Credit and Commerce International, (hereinafter referred to as "BCCI").

(3.) It is the case of the plaintiff bank that in relation to certain overdraft facility extended by said M/s. BCCI to one M/s Uttam Singh Duggal & Company, the defendant bank had given a counter bank- guarantee for value of Jordanian Dinars 3,74,800/- being Overdraft Guarantee Ref. BG-19/86.