AMARNATH SANGANARIA Vs. SONALI BANK LTD.

JUDGEMENT

(1.) The plaintiff seeks to recover damages from the defendants in this suit resulting out of execution of a contract for export. The plaintiff had entered into a tripartite contract for export of machineries to the second defendant with the first and the second defendants. The second defendant is a purchaser in Bangladesh. At the instance of the second defendant the first defendant had opened a Letter of Credit negotiable at any bank throughout India. The plaintiff claims to have negotiated the documents of title with regard to the machineries exported through the third defendant.

(2.) The claim of the plaintiff is principally on four grounds. The plaintiff claims that the export order was to be executed by four consignments. In respect of the first and the second consignments, the plaintiff had negotiated the documents of title to the goods through the third defendant with whom it had enjoyed credit facilities. The first defendant had delayed making payment in terms of the Letter of Credit and therefore the plaintiff had to pay interest on such account of such delay to the third defendant.

(3.) The plaintiff contends that the third consignment was negotiated within the validity period of the Letter of Credit. The first defendant had wrongfully refused to honour its obligations under the Letter of Credit in respect of the third consignment. The plaintiff therefore claims the value of the third consignment from the defendants.