MAHAMAYA OVERSEAS PVT LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. Mr. D.N. Patel, learned Senior Central Government Standing Counsel waives service of rule. In the facts and circumstances of the case and in view of the urgency shown by the learned counsel for the petitioners, the petition is taken up for final disposal today.

(2.) Petitioner No.1 Company is engaged in the business of import of diverse goods specially in kerosene oil and has been importing the same which is commercially known as Superior Kerosene Oil ("SKO" for short). The petitioners have entered into a contract with Aavanti Industries PTE of Singapore (Annexure'A' to the petition) for purchasing 25,000 MTS + 10% of SKO for which the shipment was to be made latest by 31.1.2004. Payment was to be made in US Dollars without discount, deductions or offset on the basis of net bill of lading quantity by confirmed irrevocable Letter of Credit ("LC" for short) in the form and substance acceptable to the seller. The value of LC should be for minimum US$ 6,750,000.00. There were various other terms and conditions specified in the LC which are not relevant for the purposes of the present petition.

(3.) It is the petitioners' case that pursuant to the above contract, on 25.11.2003, Punjab National Bank opened an irrevocable LC under which 25,000 MTS + 10% of SKO was to be purchased as per the contract dated 12.11.2003. The LC was for US$ 1,339,000.00 in the following terms:-