SWADESHI POLYTEX LTD Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) COMPLAINT was filed, inter alia, alleging that complainant-company has been carrying on business of manufacturing and marketing Polyester Staple Fibre (PSF) and same is sold under the trademark 'Jailene'. On 30.12.1994, the complainant received an order by telex from Shri Meenakshi Mills Ltd. - opposite party No. 4 for supply of Jailene PSF. On 31.12.1994, the complainant booked the order, inter alia, on the following terms and conditions :

(2.) ON 21.1.1995, opposite party No. 4 confirmed the order as per terms and conditions and opened on 19.4.1995 an irrevocable without recourse at sight letter of credit in favour of the complainant through Central Bank of India. Madurai Branch, opposite party No. 2 for Rs. 66 lakhs. Subsequently, this LC was amended on 7.6.1995. As per L.C. and its amendment issued on 7.6.1995, the following documents were required to be submitted by the complainant to opposite party No. 2 for claiming the payment :

(3.) THE complainant submitted documents as per the terms and conditions of said LC through its Bank-opposite party No. 3 and opposite party No. 3 forwarded those documents to opposite party No. 2 between 17.6.1995 and 10.7.1995. Since payment was not released on receipt of documents, the complainant and opposite party No. 3 took up the matter with opposite party No. 2. Opposite party No. 2 by telex message dated 27.6.1995 intimated opposite party No. 3 that there were following discrepancies in the documents submitted by complainant through opposite party No. 3 :