KRISHNA TRADERS Vs. DUTCH BANGLA BANK LTD.

JUDGEMENT

(1.) The instant suit is filed by the Plaintiff firm praying for decree of declaration that the Plaintiff is entitled to encash the Letter of Credit bearing number DBBL/105990071 dtd. 1/11/1999 issued by the Defendant No.1; injunction restraining the defendants and each of them whether by themselves or their subordinates, agents, men or otherwise howsoever from in any way withholding any payment due to the Plaintiff under the Letter of Credit bearing number DBBL/105990071 dtd. 1/11/1999 valued at $99,600 US dollar together with interest thereon at a rate of 24% per annum; decree for a sum of $103431 US dollar against the defendants jointly; perpetual injunction restraining the Defendant No.1 from giving any effect or further effect to or acting in terms of or pursuant to or in furtherance of its communications being Annexures "C-1" and "C-2" to the plaint; interim interest along with ancillary prayers.

(2.) The plaint case in nutshell is that the Plaintiff is a partnership firm duly registered under the Indian Partnership Act, 1932 exporting various products, having its office at 20, Hara Chandra Mullick Street, Kolkata - 700005 within jurisdiction of this Court. The Defendant No.1 is a banking company having registered office at 55, Motijheel C/A, Dhaka Bangladesh and is the issuing bank of the Letter of Credit bearing number DBBL/105990071 dtd. 1/11/1999 valued at $99,600 US dollar (in short "the said Letter of Credit"). The Defendant No.2 is an importer based in Peoples' Republic of Bangladesh, importing products into that country. The Plaintiff and the Defendant No.2 entered into an agreement at the office of the Plaintiff for sale, supply and export by the Plaintiff to the Defendant No.2 of 200 metric ton Indian red pulse (Indian Moosur Dal) at a rate of $498 US dollar per metric ton. This was in the month of October, 1999. In terms of the agreement the Defendant No.2 was to open a Letter of Credit with the Defendant No.1 bank in favour of one Shiva Shakti Enterprises at New Delhi bearing number DBBL/105990071 dtd. 01/11/1999 for $99, 600 US dollar towards price of 200 metric ton Indian red pulse (Indian Moosur Dal). The said Letter of Credit was amended from time to time. By an amendment dtd. 21/12/1999, the said Letter of Credit was transferred in the name of the Plaintiff. Part shipment was allowed under the said Letter of Credit. Number of amendments were made and finally by amendment dtd. 03/02/2000 shipment and expiry date were extended upto 15/02/2000 and 29/02/2000 respectively. There would be two shipments.

(3.) Between 29/01/2000 and 07/02/2000, the Plaintiff sold, delivered and/or exported 200 metric ton Indian red pulse (Indian Moosur Dal) in two consignments, in terms of the agreement, through a common carrier M/s Amit Road Carrier complying with all the export and customs related and other formalities. The Plaintiff submitted bills of exports for dutiable goods and export documents before the customs authorities and the later authorities allowed export of goods.