S C IMPORT EXPORT Vs. BANK OF INDIA

JUDGEMENT

(1.) Aggrieved by the quantum of the relief granted vide order dated 23.9.1996 passed by the District Forum, Ludhiana, the appellants before us are the complainants before the District Forum.

(2.) Vide its impugned order the learned District Forum has held the Opposite Parties Bank of India deficient in rendering the service for retaining the letters of credit issued in favour of the complainants appellants from 22.11.93 to 11.1.94. Instead of granting the amount as per the letters of credit, the learned District Forum has only granted compensation amounting to Rs.40,000/ only and hence this appeal.

(3.) The fabric of the facts weaving the case are short. The complainant No.1 is M/s. S. C. Import Export, 221, Hearthstone Irvine, CA 92714 U. S. A. and complainant No.2 is Dr. Subhash Sachdeva, Partner, M/s. S. C. Import Export, 221, Hearthstone Irvine, CA 92714 U. S. A. The complainants had exported certain garments to M/s. Shiwalaya Trading Corporation, Sherpur Byepass Road, Ludhiana, who had opened irrevokable letter of credit No.5601/25/12 dated 29.6.93 issued by Opposite Party Bank of India. Complainants exported the articles against the said letter of credit and handed over the documents to the Bank of California (U. S. A.) for negotiating the same. Bank of California i. e. the negotiating Bank sent the documents to the collecting Bank i. e. Opposite Party No.1 Bank of India, Model Town Branch, Ludhiana on 3.8.94 for their approval. These documents were retained by the Opposite Party for the period 23.8.93 to 11.1.94 resultantly the negotiating Bank did not make the payment to the complainants of the value of the goods amounting to the tune of Rs.1,79,767.66 p. Ultimately, the documents were returned by the Opposite Party and the complainants have to pay a sum of Rs.13,939.56p. being service charges to the collecting Bank. Hence it was stated in the complaint that because of the deficiency and negligence on the part of the Opposite Party, the complainants had suffered a total loss of Rs.1,93,727.22 p. Vide its order under challenge District Forum has held the Bank negligent and deficient in rendering the service to the complainants by retaining the said letters of credit from 22.11.93 to 11.1.94 as stated above. The finding of the negligence and deficiency in service has not been challenged by the Opposite Party Bank of India.