UNITED BANK OF INDIA LTD Vs. NEDERLANDSCHE STANDARD BANK
HIGH COURT OF CALCUTTA
UNITED BANK OF INDIA LTD.
NEDERLANDSCHE STANDARD BANK
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P.B.Mukharji, J. -
(1.) This is an appeal from the judgment and decree of G.K. Mitter, J. dismissing the plaintiff's suit against the defendant for the recovery of Rs. 36,837-9-3 without costs.
(2.) The suit was originally instituted by the Comilla Banking Corporation Ltd. to which the present United Bank of India Limited has succeeded. The defendant is Nederlandsche Standard Bank of Amsterdam, Holland. The plaintiff's suit was based on a claim arising out of a commercial letter of credit. The facts may be briefly stated at the outset.
(3.) According to the plaintiff, the defendant on the 24th November 1947 under the orders of N. Jacobson and Co., of Amsterdam, opened an irrevocable and confirmed credit in terms of Letter of Credit No. 114 dated the 24th November 1947 in favour of one Herbert Joseph Corporation of Calcutta whose sole proprietor was one D.N. Sharma and the defendant advised the opening of such credit to the seller Herbert Joseph Corporation through Messrs Netherlands Trading Society of Calcutta. The Credit was for .3360. The transaction related to a sale of 20 tons of black garbled Malabar pepper sold by Herbert Joseph Corporation to Jacobson and Company. The validity period of this Letter of Credit was expressed to be "valid December 31st 1947", 75 per cent was payable, against certain documents and 25 per cent was payable after arrival and verification of the goods at Amsterdam/Rotterdam. The plaintiff's case is that the period of validity was extended from 31st December 1947 to 5th January 1948. On the very last extended date, the 5th January 1948, the plaintiff's predecessor in the usual course of business is said to have negotiated the relative Bill of Exchange for 3360 relating to the said goods and on the faith of the said Letter of Credit advanced the sum of 2520 equivalent to Rs. 33,483/11/6 being 75 per cent of the said Credit to the seller Herbert Joseph Corporation against the shipping documents and Bill of Exchange, which were duly said to have been, transferred and negotiated by the seller to the plaintiff Bank's predecessor It is further pleaded by the plaintiff that the sum of Rs. 33,483/11/0 was paid to the seller on diverse dates commencing from the 5th January 1948 through the seller's Current Account with the plaintiff Bank's predecessor. It appears from the Bank Account that these payments were between the 5th, of January 1948, and the 17th of January 1948.;
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