OMAN INTERNATIONAL BANK S A O G Vs. SAURASHTRA CHEMICALS LTD
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS application for recovery of Rs. 2,60,47,423.07 with interest @ 23.75% p.a. from the date of filing the original application till full realization has come up before me in second round.
(2.) In the first round, the O.A. was allowed by ex parte judgment dated 4.7.2002 which judgment was set aside in M.A. No. 117 of 2002 by order dated 10.12.2002.
The applicant's case is that in or about December 1990, Letter of Credit (L/C) facility was granted by it to the defendant in lieu of which usual security documents were executed. The defendant made two applications dated 21.12.1991 and dated 23.12.1991 to the applicant for opening two L/Cs, each for Rs. 1 crore, in favour of VEEBIS Udyog Services, Calcutta (for short 'VEEBIS') on the terms and conditions contained in the applications. Accordingly, the applicant opened L/C Nos. 351/91 and 352/91 dated 26.12.1991 for Rs. one crore each. The beneficiary operated the L/C within the validity period and negotiated the documents. The documents were in compliance with the terms and conditions. The defendant had also unconditionally accepted the documents irrespective of discrepancies, if any.
(3.) BEFORE the due date of payment, the defendant filed Special Civil Suit No. 24 of 1992 in the Court of Civil Judge, Sr. Dvn., Porbandar for restraining payment under the two L/Cs. By order dated 6.7.1992, the Court clamped ad interim injunction. In the appeal filed by United Western Bank (originally not party to the O.A.), the Hon'ble Gujarat High Court set aside the injunction and directed the applicant to make payment to United Western Bank who was required to keep the amount in the separate account. Accordingly, the applicant paid Rs. 1,97,89,332.95 to United Western Bank on or about 18.7.1992. The defendant thereupon became liable to make payment to the Bank.;
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