B P JAIN Vs. SUBHASH CHADHA

JUDGEMENT

(1.) Briefly the case of the complainant is that he is carrying on the business of silk and cotton fabrics and madeups in the name of style of M/s The Choice Exports. He, on the basis of an export order, exported natural silk fabrics to M/s London Textiles and Fibres, PB 52589 Houston, TX, USA under Airway Bill No.214-1188-5020 dated 30.12.85 for a sum of Rs.1,99,999/equivalent to US $ 15,800/-. The consignee did not take the delivery of the documents as well as of goods.

(2.) The respondent Shri Subhash Chadha came to know about the fate of the goods and he approached the complainant for purchase of the said consignment lying at Houston, USA. He agreed to purchase the same. The complainant obtained the permission of Reserve Bank of India and requested his bankers to effect the necessary change in favour of the respondent. His banker after obtained instructions of the respondent sent the documents to the banker of the respondent; namely First Investor Co. , 10 Wall Street, New York, USA with the direction to hand over the documents against payment to the respondent.

(3.) It is alleged that the complainant received a letter dated 27.12.86 addressed by the respondent to his (respondent) banker, namely First Investor Co. , with a copy endorsed to the complainant instructing his banker to make the payment of the said documents/bill of exchange to the complainant's banker and that he (respondent) would collect the documents when he would be in US A. On receipt of the said letter the banker of the complainant started requesting the banker of the respondent to effect payment to them but there was no response from the banker of the respondent. The complainant, on enquiry, came to know that the respondent managed to get the delivery of the documents from his banker without making payment to them. It is alleged that in this way the respondent played a fraud upon the complainant. Reserve Bank of India and also on his banker.