NEELKANTHA JUTE DEALERS Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) FEELING aggrieved by the dismissal of the complaint filed for deficiency in rendering banking service by not honouring the letter of credit, Nilkantha Jute Dealers-complainant has filed this appeal.

(2.) THE case of the complainant-appellant is that the Central Bank of India issued a letter of credit on 1. 1. 1992 for a sum of Rs. 6,50,000 to make the payment of the invoices of the jute to be supplied to respondent No. 2. The last date for presentation of documents was fixed for 24. 3. 1992 and thereafter, it was extended to 24. 6. 1992. The appellant-complainant invoked the letter of credit. The bills were submitted on 22. 9. 1992. Out of aforesaid 8 bills, only one bill was paid and 7 bills returned by letter dated 21. 10. 1992 were received on 29. 10. 1992. They were returned on the ground that in the bills, there were some cuttings and over-writings. Within 24 hours of the receipt of the letter, on 30. 10. 1992, the appellant submitted fresh mill receipts and requested for payment but the bank refused to honour the bills on the ground that letter of credit in question expired on 24. 9. 1992.

(3.) THE respondent contended that said 7 bills were returned for the reason that mills receipts had been issued to a different party other than beneficiaries as per Annexure A-26, and the same were not acceptable as per letter of credit and also as per practice as contained in UCPDC (Uniform Custom and Practice the Documentary Credit ). The respondent No. 2 though made a party was not originally a party before the State Commission.