UPL LIMITED Vs. STANDARD CHARTERED BANK

JUDGEMENT

(1.) This is a suit ; for dama ges for negligence in making payment of money under the letter of credit and consequent loss of business, and interest thereon.

(2.) The material averments in the plaint can be summarized, in brief, as under:

(3.) The defendant appeared in response to the suit summons and resisted the claim by filing the written statement. The suit was stated to be barred by law of limitation as the institution of the suit on 4th August, 1999 was clearly beyond the period of three years from the date of accrual of cause of action i.e. 22nd July, 1996 on which the documents were delivered by the bank to the plaintiff. The tenability of the suit was also assailed on the ground that the plaintiff was estopped from laying any claim against the defendant as the plaintiff had executed Master Counter Indemnities dated 30th December, 1996 and 10th July, 1997, whereby the plaintiff agreed to indemnify the defendant once the account of the plaintiff was debited by the defendant-bank.