STATE BANK OF INDIA Vs. MOTI THAWARDAS DADLANI

JUDGEMENT

(1.) (A). Suit No. 1012 of 1983 is filed for a decree in the sum of Rs. 6,49,209.49.00 with interest on Rs. 5,71,337.49.00 at the rate of 18 per cent pa. from the date of the suit till payment. In the alternative the plaintiffs have sought a decree against the Defendants in the sum of Rs. 1,17,364.60.00 with interest at the rate of 18 per cent on Rs. 1,05,928.58.00 from the date of the suit till payment. The suit was originally filed by Dadlani Silk Stores and the present Defendant No. 2, Visharaj Garments Private Limited. By an amendment Dadlani Silk Stores were substituted by the present Plaintiff No. 1, Ramesh Thawardas Dadlani.

(2.) The parties agreed that the decision in Suit No. 873 of 1983 would follow the decision in Suit No. 1012 of 1983. Hence this common judgment in the two suits. The Counsel addressed me in Suit No. 1012 of 1983. The references in this judgment therefore pertain to the parties and facts in Suit No. 1012 of 1983. The Plaintiff's Case:

(3.) The Plaintiffs case is that pursuant to a request made by original Plaintiff No. 1, Dadlani Silk Stores, the Defendants by a letter dated 2.2.1979 granted them a documentary imports Letter of Credit facility upto a limit of Rs. 50 lacs, which was subsequently increased to Rs. 75 lacs by a letter dated 14.12.1979. This was subject to a margin of 20 per cent by way of lien on Term Deposit Receipts issued by the Defendants in favour of Original Plaintiff No. 1 or the current account balance of original Plaintiff No. 1 and/or their associate concerns including Defendant No. 2.