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

JUDGEMENT

(1.) The Court : This appeal is directed against an order passed in an application under Chapter XIIIA of the Original Side of this Court. This order is a deemed decree and has disposed of the suit in its entirety. The said decree is assailed by the appellant on the ground that the appellant is not required to make payment under the letter of credit as the plaintiff has failed to substantiate that the goods have reached the destination and the defendant no.2 has received the said goods.

(2.) In order to appreciate the nature of objection, it is necessary to briefly state the facts.

(3.) The plaintiff entered into an agreement to supply goods to the second defendant having its place of business in Bangladesh. The second defendant is a Bangladeshi importer. The second defendant requested the first defendant to issue an irrevocable letter of credit in respect of the transaction. The irrevocable letter of credit is expressly governed by the latest version of Uniform Customs and Practice (UCP) for documentary credit. The first defendant bank undertook to pay the specified amount upon specified document being furnished as detailed in the letter of credit by the plaintiff exporter. The plaintiff forwarded the document, on or before 9th December, 2010 without any letter addressed by the first defendant to its constituent. The first defendant claimed to have received such document only on 13th December, 2010. The first defendant bank did not immediately protest on the document being received or point 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 10th January, 2011 that the first defendant reached to the plaintiff's bankers. In this regard, the following lines which correctly described as "remarkable lines " by the learned Single Judge is noted :