CENTRAL BANK OF INDIA Vs. DARPAN ARTS EMPORIUM

JUDGEMENT

(1.) These are a set of four appeals, two each filed by M/s. Darpan Arts Emporium, Complainant before the State Commission and other two by Central Bank of India, OP before the State Commission. The matter before the UP State Consumer Disputes Redressal Commission arose from two complaints between these parties, which were disposed of together in the order of 14.7.2006 passed by the State Commission.

(2.) The complaints concerned two transactions of export of carpets to USA, one in fanuary, 1999 and the other in August 1999. In both cases, the documents were sent through the OP with instructions to deliver them on payment by the buyer. In both cases, the local bank i.e. Marine Midland Bank, New York, in CC No. 159 of 2000 and the Nation Bank in Houston, in CC No. 160 of 2000, delivered the documents without receiving the payment and hence the dispute.

(3.) The case of the Complainant/Darpan Arts Emporium before the State Commission was that it is engaged in the business of manufacture, sale and exports of carpets, rugs, etc. The banking facility for this business, was being provided by the OP/Central Bank of India. When the cargo was shipped for delivery to the buyer in the USA, the documents, including the invoice and bill of lading, were sent to the OP/Central Bank of India, on the condition of delivery against payments. The OP sent the documents to its corresponding Bank in the USA with the stipulation that the delivery of the said documents was to be against payment only. Even in the written response of OP/Central Bank of India, it is mentioned that there is no dispute about the Complainant having sent the documents on DP condition i.e. delivery of documents against payment only. The complaint petition states that, "it is the duty of the Opposite party bank or its agent to deliver the documents only after receipt of payment as the Opposite party bank charges the consideration for rendering the said facility to its customers."