SIGMA EXPORTS Vs. STATE BANK OF PATIALA

JUDGEMENT

(1.) This Regular First Appeal under Section 96 of the Code of Civil Procedure, 1908 (CPC) is filed by the plaintiff in the suit impugning the Judgment of the Trial Court dated 15.02.2006 by which the trial court has dismissed the suit for recovery of Rs. 4,33,061/- filed by the appellant/plaintiff against the respondent/defendant/State Bank of Patiala. The claim of the plaintiff was that the respondent/defendant-bank, after more than three and half years of giving a credit for an amount of Rs. 2,74,820/- on 27.05.1996, vide letter dated 28.08.1999, claimed that the credit advice was given by mistake. The credit/payment of Rs. 2,74,820/- equivalent to US$ 7885.50 (at Rs. 35/- per dollar) was the payment to be received by the appellant/plaintiff as seller from the buyer M/s Jean Poppe, Belgium.

(2.) The facts of the case are that the appellant/plaintiff filed the subject suit pleading that it is the manufacturer and exporter of cotton home furnishing. The appellant/plaintiff maintained its current account with the respondent/defendant-bank. In July, 1995, the appellant/plaintiff shipped its consignment to Belgium for the buyer M/s Jean Poppe, Belgium as per Invoice dated 18.06.1995. The documents with respect to the shipment of goods were sent by the appellant/plaintiff for collection of payment through the respondent/defendant-bank. The appellant/plaintiff states that it received a credit advice from the respondent/defendant-bank on 27.05.1996 with respect to the amount of Rs. 2,74,820/-, however, the respondent/defendant-bank after about three and half years on 28.08.1999 claimed that by mistake the credit was made in the account of the appellant/plaintiff because in fact no amount was received by the respondent/defendant-bank from the foreign buyer through its bank with respect to the subject shipment under Invoice dated 18.06.1995. Reference is made in the plaint, thereafter, to various correspondence between the parties of the year 1999 and ultimately of the appellant/plaintiff sent Legal Notice dated 25.04.2001 and thereafter the subject suit was filed claiming the principal amount of Rs. 2,74,820/- along-with the balance amount towards interest totaling to Rs. 4,33,061/-.

(3.) The respondent/defendant-bank contested the suit and pleaded that by a mistake, credit was given in the account of the appellant/defendant, in view of the foreign department of the respondent/defendant-bank sending the payment advice dated 210.1996, which was actually under a mistake of fact, because infact no payment has been received by the respondent/defendant-bank.. This mistake was discovered while reconciling the bank's account in August, 1999. Accordingly, the respondent/defendant-bank marked a lien on the funds of the appellant/plaintiff lying with the respondent/defendant-bank for the amount of Rs. 3,45,019/- on account of the wrong credit given of Rs. 2,74,820/- to the appellant/plaintiff on 27.05.1996. The respondent/defendant-bank also pleaded that the original documents were already sent back to the appellant/plaintiff by courier on 17.08.1996. Therefore, the Suit was prayed to be dismissed.