NAVYUG ENTERPRISES (P) LTD. Vs. BANGLADESH KRISHI BANK

JUDGEMENT

(1.) The claim is quite simple. Though the plaintiff's anxiety to cover all the bases that need not have been covered has resulted in much more having been said in the plaint and others parties being imp-leaded, the claim is essentially under an irrevocable international letter of credit issued by the first defendant bank.

(2.) The plaintiff claims to have agreed to supply goods to the second defendant Bangladeshi importer. The second defendant caused the first defendant bank to issue an irrevocable letter of credit in respect of the transaction. Under such irrevocable letter of credit, which was expressly governed by the latest version of Uniform Customs and Practise for Documentary Credits, the first defendant bank undertook to pay the specified amount upon certain documents as detailed in the letter of credit being furnished by the plaintiff exporter.

(3.) There is no doubt that UCP 600 applies to the transaction and the plaintiff and the first defendant accept such position. The plaintiff forwarded the documents on or about Dec. 9, 2010, though in a letter addressed by the first defendant to its constituent, the second defendant, the first defendant claims to have received such documents only on Dec. 13, 2010. The first defendant bank did not immediately protest the documents or point out any discrepancy or non-compliance with the terms of the documentary credit on the part of the plaintiff or the third defendant negotiating bank. It was only on Jan. 10, 2011 that the first defendant wrote to the plaintiff's bankers the following remarkable lines: "Please refer to you export Bill under reference No.0480510BP0001241 Date 09.12.2010 drawn on our L/C No 049910010537 Date 10.11.2010 for USD.51,400.00. It is very regretted that your exporter M/S. Navyug Enterprises Pvt. Ltd. 3f, Trinity House, 226/1, AJC Bose Road, Kolkata-700020 have not shipped any goods against this documents and our customs authority of Port landing station i.e. Sonamasjid land customs Sibganj, Chapai Nababganj confirmed the same vide their letter no.5-Cus- 20(26) Bangladesh Bank/SO:M:/09/42 Date-06.01.2011 photocopy of which enclosed. Though, Bank deals with documents not with goods. But how a bank can pay money against fake documents like this. However, we returned herewith your documents without any risk and responsibilities on our part. Please acknowledge receipt."