BANK OF BARODA, INDORE Vs. KRISHNA GOPAL KAKANI

JUDGEMENT

(1.) THE appellant/defendant Bank has preferred this first appeal under section 96 of the Code of Civil Procedure being aggrieved by the judgment and decree dated 3 -2 -2000 passed by the Special Additional District Judge, Indore in Civil Original Suit No. 17 -B/1999 whereby decreed the suit of the respondent/plaintiff for a sum of Rs. 23,54,707.58 ps. along with interest @ 11% per annum from the date of the filing of the suit till its recovery with costs.

(2.) THE brief facts of the case are that on 8 -9 -1997 respondent/plaintiff filed a suit for recovery of Rs. 23,54,707.58 ps. on the pleadings that at the material time the respondent/plaintiff was the Proprietor of M/s Oriental Traders, a concern which was dealing as manufacturers representatives, commission agent, Importer and I/A holder. The said firm has now stopped its business but is still in existence. The respondent/plaintiff obtained Letters of Authority from the Joint Chief Controller of Imports and Exports, Bombay for importing raw materials on account of the Licensees to whom the Import licenses had been granted. After receiving letter of Authorities, respondent/plaintiff placed orders with the Foreign suppliers for the import of Raw Materials namely - (i) 59 Cartons of Whatman Filter Papers; and (ii) 224 Cartons of "SASOO" Branch pure olive oil. The respondent/plaintiff approached the appellant/defendant Bank for opening Letters of Credit for the above mentioned two import Consignments. The appellant/defendant Bank opened the letters of credit on 24 -8 -1973 as L.C. No. INDI/7123 and on 21 -9 -1973 numbered as L.C. No. INDI/7139. The respondent/plaintiff deposited the margin money to the extent 10% of the value of the raw materials and deposited Rs. 4,560.00 on 24 -8 -1973 for L.C. No. 7123 and Rs. 4,810.00 on 21 -9 -1973 for L.C. No. 7139. Thereafter the respondent/plaintiff complied with various formalities and Regulations like submitting the exchange control copies of the Licenses, Letters of Authority along with the endorsement and negotiated the Letters of Credit on 22 -1 -1974 and 19 -3 -1974.

(3.) PURSUANT to the said interim order, Public Auctions of the imported material were carried out twice and the sale proceeds were made out to Bank of India, Bombay Branch for Rs. 1,84,485.90 ps. on 24th August, 1976 and Rs. 2,88,228.26 ps. was deposited on 17th November, 1976, thus total Rs. 4,72,714.16 ps, was deposited with the Prothonotary and Senior Master of Bombay High Court. The Misc. Petition No. 950 of 1975 was finally disposed of by the Bombay High Court on 3 -10 -1979. In sum and substance the order was that the petitioner are entitled to that amount and the Fixed Deposit receipt would stand discharged along with the interest. The petitioner Bank shall pay an amount of Rs. 8,044.18 to Bombay Port Trust authorities towards demurrage charges within a period of 4 weeks and the petitioner Bank would also be liable to pay the customs duty to the Customs authorities in respect of the goods covered under these consignments.