SHREE TRADERS Vs. INDEQUIP ENGINEERING LTD.

JUDGEMENT

(1.) Though served, the respondent No.2-Bank- original defendant No.2 has chosen not to enter its appearance in the present appeal even after a period of 20 years.

(2.) The appellant-plaintiff had instituted Summary Suit No.5351 of 1986 in the City Civil Court at Ahmedabad against the respondents-defendants for payment of amount as per the letter of credit. The respondent No.1-original defendant no.1 had placed an order with the appellant-plaintiff for supplying various goods. The respondent-defendant No.2-Bank had opened and established an irrevocable letter of credit in favour of the appellant-plaintiff. The respondent-Bank had agreed to pay the amount of the said irrevocable letter of credit 60 days after the date of delivery of the goods to the respondent No.1. The appellant supplied the goods to the said company. Since the payment was not received, the appellant called upon the respondent-Bank to pay up the amount of the irrevocable letter of credit. The respondent-Bank failed to honour its commitment.

(3.) At the outset, learned advocate Mr.Shah for the appellant has submitted that the impugned judgement and order is required to be quashed and set aside since the entire judgement is premised on interpretation of Exh.39, which is the letter of credit issued in favour of the appellant by the defendant-bank. He has submitted that the trial Court has subsequently observed that the letter of credit incorporates the condition of hundi however, there is no whisper with regard to hundi duly drawn in Exh.39, and thus, the trial Court has tried to impose new contract by making such observation upon the parties and hence, the impugned order may be set aside.