RABO BANK Vs. STATE BANK OF HYDERABAD

JUDGEMENT

(1.) BY this Summons for Judgment, plaintiffs seek that the judgment be entered for the plaintiffs in this suit against the defendants for a sum of USD 1,931,627.89 as per particulars of claims with further interest thereon as per provisions of Negotiable Instruments Act and/or under the Interest Act, and/or under the provisions of Section 34 of the Civil Procedure Code, 1908 at the rate of 9.75% per annum and/or at such other rate as the Hon'ble Court deem fit from the due date till payment and/or realization and for the costs of the suit.

(2.) PLAINTIFFS carries on business through its Singapore branch. Defendants are also the banking company, interalia, carrying on business in Mumbai through its various branches and has its registered office at Hyderabad. M/s.Gloland (Far East) Pte.Ltd. was a constituent of the plaintiffs which constituent was carrying on business of export of chick peas. The said constituent M/s.Gloland (Far East) Pte.Ltd. had transactions with M/s.Kothari Global Ltd. and M/s.Marudhar Edible Oils Ltd. It is the case of the plaintiffs that in respect of such cargo shipped by constituent of the plaintiffs to M/s.Kothari Global Ltd. and M/s.Marudhar Edible Oils Ltd., plaintiffs had sent documents on collection basis to the defendants who were required to release the documents against payment. The plaintiffs have sent documents in three sets on various dates stated in paragraphs 2(b) of the plaint. The said documents were not released by the defendants for want of payment. It is the case of the plaintiffs that the plaintiffs were informed through their constituent subsequently that the defendants bank would be willing to accept the bills of exchange which were payable after 170 days. The plaintiffs by their fax dated 9th September, 1998 referred to certain invoices/bills of exchanges drawn by the plaintiffs' constituent on certain consignees in India and enquired from the defendants as to whether they would be prepared to accept the bills of exchange (drafts) drawn upon the defendant bank payable after 170 days from 10th September, 1998. The defendants by their tested telex dated 12th September, 1998 communicated their consent to accept the bills of exchange (drafts).

(3.) ALONGWITH covering letter dated 16th September, 1998, the plaintiffs forwarded to the defendants four bills of exchange drawn by the constituent of the plaintiffs M/s.Gloland (Far East) Pte.Ltd. to the order of the plaintiffs bank drawn on the defendants' bank at its Bura Bazar Branch, Calcutta Branch all dated 9th September, 1998. The said bills of exchange were for USD 202,725.60, 414,233.25, 81,385.15 and 120,855.35 respectively payable at 170 days from 10th September, 1998 i.e. 27th February, 1999. It is the case of the plaintiffs that the said bills of exchange are in custody of the defendants.