HARTLAY KNITS Vs. DVH INDUSTRIES INC

JUDGEMENT

(1.) THE plaintiff, a partnership firm is engaged in the business of exporting readymade garments to foreign countries. Defendant No. 2 is claimed to be an agent of defendant No. 3 and in that capacity placed a purchase order with the plaintiff in March-April 1999 for supply of specified quantities of cotton ready made garments vide Exhibit P-2. The detailed description of the garments was given in the purchase order.

(2.) IN order to secure the payment of the plaintiff, the buyer bank at USA opened irrevocable letters of credit to the plaintiffs bank, Oriental Bank of commerce. The goods were to be transported free of board through nominated carrier.

(3.) IT is the claim of the plaintiff that the goods were duly dispatched along with invoices totalling to US $ 1,27,085. 50. The payment was not made to the plaintiff but the possession of the goods was taken over and it is alleged that the same occurred on account of collusion between the nominated carrier, buyer and its agent. Since the payment was not made, the present suit for recovery of US $ 1,27,085. 50 with interest @ 20 per cent was filed, against the nominated carrier as defendant No. 1, the agent as defendant no. 2 and the buyer as defendant No. 3. However, on an application being filed under Order 7 Rule 11 of the Code of Civil Procedure, 1908 by the nominated carrier, the said nominated carrier, in terms of the order dated 31. 7. 2006, was deleted as a defendant from the array of parties and the suit, thus, continued only against the present two defendants, being the agent and the buyer respectively.