TATA MOTORS LIMITED Vs. JSC VTB BANK

JUDGEMENT

(1.) This is an application under Order XXXVII Rule 5 of the Code of Civil Procedure, 1908 (CPC) filed on behalf of the defendant seeking leave to defend in the subject Order XXXVII suit.

(2.) The facts of the case as stated in the plaint are that the plaintiff is the seller of goods. The buyer of the goods originally was Closed Joint - Stock Company, Cars and Engines of Ural (CJSC Amur) and which buyer was subsequently changed to "Trade House Amur". Plaintiff pleads that it sold 32 units of truck chasis to the Trade House Amur and which was covered by the subject Letter of Credit dated 11.10.2008 for US$ 406,400. The further case in the plaint is that the defendant is the issuing bank, and when the plaintiff as the beneficiary of the letter alongwith the Letter dated 21.10.2008 presented documents to the defendant (through advising bank) for payment attaching therewith the documents as required under the letter of credit, defendant refused to make the payment on the ground of four discrepancies in the documents presented. The four discrepancies and its effect have been dealt with by the plaintiff in paras 23 to 26 of the plaint and these paras read as under: -

(3.) Accordingly, the plaintiff has sought a money decree of US$ 406,400 alongwith pendente lite and future interest @ 18% per annum simple alleging that the defendant wrongly refused payment under the letter of credit raising reasons of discrepancies but which discrepancies were not discrepancies in the eyes of law.