USHDEV INTERNATIONAL LTD Vs. SIMS COPPER SDN. BHD

JUDGEMENT

(1.) THIS appeal is directed against the order dated 3 March 2014 of the learned Trial Judge dismissing the notice of motion taken out by the appellant -plaintiff to restrain/injunct the respondent -defendant No. 5 -Bank (issuing Bank) from making any payment to respondent -defendant No. 2 -Bank (negotiating Bank) under the Letter of Credit dated 28 October 2011. The above Notice of Motion was taken out by the appellant -plaintiff in a suit for permanent injunction to: -

(2.) THE plaintiff entered into a contract for purchase of goods with defendant No. 1. The goods were to be shipped by defendant No. 1. A Bill of Lading is stated to have been issued. At the instance of the plaintiff, a Letter of Credit was issued by defendant No. 5 -Bank to the defendant No. 2 -Bank on 28 October 2011 wherein defendant No. 1 was shown as beneficiary of US $ 1.25 million. The Letter of Credit was subject to Uniform Customs and Practice for Documentary Credit (UCP) 600 and to have a complying presentation, it was necessary for the beneficiary to submit inter alia a valid Bill of Lading. The payment was to be made under the Letter of Credit within 180 days and also contained the following clause: -

(3.) IT is the appellant -plaintiff's case in the plaint itself that the Bills of Lading purported to represent that goods had been shipped on board CSAV Renaico on 3 November 2011. Believing the documents to be true and genuine, the plaintiff had instructed its bank i.e. defendant No. 5 -Bank to accept the bill presented for payment on the due date. Accordingly, defendant No. 5 -Bank also sent two emails on 29 November 2011 and 30 November 2011 respectively to defendant No. 2 -Bank intimating its advice for payment in the aggregate of US$ 1.25 million under the Letter of Credit.