INDUS IND BANK LIMITED Vs. SIVAKUMAR

JUDGEMENT

(1.) This appeal is at the instance of the Bank which figured as the second defendant in C.S.(Comm.Div) No.591 of 2018.

(2.) For convenience, the parties will be referred to as per their rank in the Suit.

(3.) The plaintiff sued for recovery of a sum of Rs.1,15,09,628.00 with interest at 18% on the principal amount of Rs.1,06,33,863.00 from the date of plaint till the date of realization. According to the plaintiff, he had supplied Steel (TMT Bars) weighing about 2,55,540 Kgs at Rs.38.20 per kg to the first defendant under an Invoice dtd. 22/5/2017. A Bill of Exchange was drawn by the plaintiff and the same was discounted with the plaintiff's Banker, namely the third defendant. The third defendant on receipt of the Bill of Exchange, forwarded it to the second defendant, which is the Banker of the first defendant / purchaser seeking its acceptance for collection. According to the plaintiff, the second defendant initially accepted the Bill of Exchange, however, subsequently came up with a false reason that the goods were returned by the buyer for quality issues and therefore, it is not liable to pay. The plaintiff would further plead that having accepted the Bill of Exchange through a SFMS message on 29/5/2017, the second defendant cannot resile from the contract and refuse to pay on an imaginary pretext of return of the goods. The plaintiff hence sued for recovery.