SHANTI SALES (INDIA) PRIVATE LIMITED Vs. UCO BANK

JUDGEMENT

(1.) This appeal under sec. 19 of the Act 1986 is in challenge to the Order dtd. 6/1/2020 of the State Commission in complaint no. 864 of 2019.

(2.) We have heard the learned counsel for the appellant (the "complainant co.") and for the respondents no. 1 and no. 2 (the "UCO bank"). We have also perused the record including inter alia the State Commission's impugned Order dtd. 6/1/2020 and the memorandum of appeal.

(3.) Relevant facts of the case have been succinctly captured by the State Commission in para 2 of its impugned Order, which is being reproduced below for reference: 2. Brief facts of the complaint are that the complainant company is maintaining its account in OP no.1-bank. The complainant company had been dealing with one Mansa Print and Publishers Limited and had been supplying goods relating to the business of complainant and Mansa Print and Publishers Limited were having their bank account in IDBI Bank Limited, Chandigarh. The IDBI Bank Limited drawn a documentary letter of credit no.110143ILCU00794 dtd. 24/12/2011 amounting to Rs.25.00 lakhs on behalf of its client Mansa Print and Publishers Limited in favour of beneficiary the complainant. As per terms of LC, original invoice, two copies of value of goods, original MTR should have been submitted to the Bank of complainant. Complainant company issued a bill of exchange dtd. 25/12/2011 indicating the date of invoice, number of invoice and valuation papers of goods and a complete set of documents, as referred in LC, were handed over to OP no.1 on 26/12/2011 and the LC was discounted by OP no.1 on the same day. The amount of LC after deducting the interest of 90 days was credited in the account of the complainant company. The above referred documents submitted by complainant company were required to be sent to IDBI Bank by UCO bank on or before 30/1/2012 i.e. before expiry of LC, but those documents were kept by OP no.1 till 30/3/2012 and dispatched to IDBI Bank on 30/3/2012, which were received by IDBI Bank on 30/1/2012. Thereafter, the documents were dispatched by IDBI Bank to M/s Mansa Print and Publishers Limited on 5/4/2012 for their acceptance, but ultimately LC was rejected with the reasons "LC Expired" vide letter dtd. 10/4/2012. The IDBI returned the document on 11/4/2012 to OP no.1 bank and ultimately UCO Bank again collected Rs.25.00 lakhs from the account of complainant company along with interest of Rs.52,760.00. There was no fault on the part of complainant company, as stated above. Many letters were written to OPs by complainant company in this regard, but OPs replied to only one letter, vide reply dtd. 2/2/2018, Ex.C10. The complainant company is now demanding its money in view of mistakes of OPs, but they are refusing to pay back the money to it. The complainant relied upon various letters Ex.C-11 to C-15, which were written to OPs in this regard, but to no effect. Hence, the present complaint.