MADAN KUKREJA Vs. BANQUE SCALBERT DUPONT S.A.

JUDGEMENT

(1.) THIS suit seeks a decree against the Defendant No.1 for a sum of Euro 49,842/- along with pendente lite and future interest at 16.5% annum together with costs.

(2.) THE Plaintiff describes himself as the Proprietor of a concern under the name and style of M/s Super Fashion, which is an exporter of garments. Its export destinations are claimed to be the United States of America (USA), Canada and Europe. The Plaintiff claims that the concern has acquired the status of a government recognized export house. Defendant No.1 is a bank headquartered in France, having an office in Delhi. It is stated to be fully owned by the Credit Industriel et Commercial (CIC), a joint stock company incorporated under the laws of France and having its head office at Paris. CIC has a representative office in New Delhi established under permission of the Reserve Bank of India (RBI) by a letter dated 18th February 1997. Defendant No.2 is the Syndicate Bank with which the Plaintiff has an account. It is stated that the Defendant No.2 is only a proforma party.

(3.) THEREAFTER the goods were shipped by the Plaintiff under House Airway Bills (HAWB) Nos. 022288 dated 7th May 2003 and 022294 dated 9th May 2003. The total value of the shipment was Euro 45390. In the HAWB, the consignee was shown as the Defendant No.1 Bank with Promod S.A. being shown the party to be notified upon the arrival of the goods at the destination. The dispatch of the goods, however, took place after the LC dated 8th November 2002 had expired on 4th May 2003. According to the Plaintiff, Li & Fung India assured the Plaintiff that notwithstanding the expiry of the LC, the documents on presentation would be honoured. Accordingly after the shipment of the goods, the Plaintiff prepared the necessary documents relating to the said shipment such as invoices, packing list, certificate of origin etc. Along with the said HAWB, these documents were presented by the Plaintiff to Defendant No.2 with the request that they should be sent to the Defendant No.1 Bank on collection basis. This procedure had to be resorted to since the LC, which expired on 4th May 2003 was not extended despite requests by the Plaintiff.