MAURIA UDYOG LTD Vs. CORPORATION BANK
HIGH COURT OF DELHI
MAURIA UDYOG LTD.
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SANJIV KHANNA, J. -
(1.) By way of present appeal, M/s Mauria Udyog Limited has challenged and questioned order dated 11th April, 2005 passed by the learned Single Judge dismissing the applications - IA Nos. 388/2005 and 564/2005 for an ad interim injunction under Order XXXIX, Rules 1 and 2, and IA No. 879/2005 under Order XXXX, Rule 1 of the Code of Civil Procedure, 1908 (hereinafter referred to as the Code, for short) for appointment of a Receiver.
(2.) Facts in brief relevant for deciding the present appeal may be noticed. The appellant had entered into a contract with M/s Lusamatex Maquinas Texteis, LDA Protugal for purchasing equipment and ancillary items mentioned in sale contract No. 245/2004 dated 21st April, 2004 for total sale consideration of EURO 2,20,000. Out of the said amount, EURO 22,000 was paid in advance and the remaining balance of EURO 1,98,000 was secured by an irrevocable letter of credit issued by Corporation Bank, respondent Nos. 1 and 2 herein. This letter of credit was opened on 1st June, 2004 and it's validity was upto 31st August, 2004
(3.) It is the case of the appellant that the respondent No. 4, the seller had failed to send certificate of origin in respect of 17 items mentioned in the purchase order and, therefore, Corporation Bank should not have honoured the letter of credit and made payment to the seller, the respondent No. 4. It was submitted that in view of the discrepancy in the letter of credit and failure to issue certificate of origin, the goods remained detained at the port, resulting in heavy demurrage charges being levied and were ultimately auctioned by the customs/port authorities.;
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