S. N. Variava, J. - (1.) These Appeals are against the Order of the Delhi High Court dated 17th July, 2001.
(2.) Briefly stated the facts are as follows : The Appellants are the owners of vessel "DEKHODA" . They had chartered out the said vessel to the 1st Respondent. In respect of freight and demurrage charges, certain amounts became due and payable. For remitting this amount, the permission of the Reserve Bank of India was required. According to the Appellants, the 1st Respondent, through its Banker, the 2nd Respondent, was to apply for the Reserve Bank of India permission. In the meantime , parties agreed that the irrevocable Standby Letter of Credit would be opened. The 1st Respondent thus gave to the Appellants irrevocable Standby Letter of Credit issued by the 3rd Respondent. After receipt of the irrevocable Standby Letters of Credit, the Appellants delivered possession of the cargo to the 1st Respondent. In respect of the amount of freight, Reserve Bank of India permission was taken and the amount was remitted. The 1st Respondent then raised the dispute in relation to the liability for the sum of USD 267, 000 for demurrage.
(3.) As the 1st and/or 2nd Respondents were not applying for Reserve Bank of India permission the Appellant invoked Arbitration as per the Charter Party Agreement. The Appellants then filed Suit No. 1746 of 1996, in the Delhi High Court. In the suit , the only allegations were against the 1st and 2nd Respondents. Even though the 3rd Respondent was a party to the suit, there were no allegations against them. However, the following prayers were made in the suit :- "(a) Grant of decree of mandatory injunction directing the Defendants to keep the irrevocable Letter of Credit, issued by Global Trust Bank, Calcutta, bearing No.CA/FLC/011/96 dated 20th May, 1996 alive beyond it is present date of expiry 15th August, 1996, till the dispute is settled between the parties by the Arbitral forum culminating in a decree. b) Grant a decree of permanent injunction directing the Defendants to perpetually keep alive the irrevocable Letter of Credit, issued by Global Trust Bank, Calcutta, bearing No. CA/FLC/011/96 dated 20th May, 1996 till the dispute is settled between the parties by the Arbitral forum culminating in a decree." ;