THE STATE TRADING CORPORATION OF INDIA LTD. Vs. VIJAYA BANK AND ORS.
LAWS(CAL)-2016-3-63
HIGH COURT OF CALCUTTA
Decided on March 29,2016

The State Trading Corporation Of India Ltd. Appellant
VERSUS
Vijaya Bank And Ors. Respondents

JUDGEMENT

Harish Tandon, J. - (1.) It would be unnecessary to go into extensive details of the facts as pure question of law is raised at the time of entertaining G.A. 2628 of 2009 filed by Deutsche Bank for vacation, variation and modification of interim order passed in the suit without seeking its impleadment and/or addition as party in the suit.
(2.) In a suit for declaration that the Respondent No. 1 is not liable to make any payments under the letter of credit dated 22nd May, 2008 for a sum of US$1912756.57 for supply of 3340.495 metric tons of French Yellow Peas under the commercial invoice dated 15th September, 2008 and the Respondent No. 2 is not entitled to any payment under the said Letter of Credit and cancellation thereof, an order of temporary injunction was passed, on January 16th, 2009, after recording the existence of prima facie case of fraud and balance of convenience and/or inconvenience lies in favour of the Petitioner in terms of Prayer 'A' to the application which is set out herein below: - - "An order of injunction restraining the respondent No. 1 from making any payment or reimbursing the bankers of the respondent No. 2 any sums under the Letter of Credit dated 22nd May, 2008;"
(3.) It is not in dispute that the said order was extended from time to time and is still in force. The Deutsche Bank, the applicant in G.A. 2628 of 2009 took out an application claiming following reliefs: - - "a) The said interim order dated January 16, 2009 passed by this Hon'ble Court be vacated and/or set aside; b) The said interim order dated January 16, 2009 passed by this Hon'ble Court be suitably varied and/or modified and/or clarified; c) The defendant No. 1 be directed to release and make payment of the said US$ 1,912,756.57 equivalent to Rs. 93,094,086.71 forthwith in terms of the said Letter of Credit dated May 22, 2008; d) Ad interim order in terms of prayers above; e) Cost of and/or incidental to this application be paid by the plaintiff; f) Such further or other order or orders be passed and/or direction or directions be given as to Your Lordship may deem fit and proper";


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