- (1.) THIS application is filed against an order dated 5th June, 2007 passed by the Hon'ble Single Judge vacating the interim order of status-quo granted by the Court passed on 9th April, 2007. The said order was passed at ad interim stage on the returnable date.
(2.) THE application was filed by the appellant under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the said Act") for an order of injunction restraining the respondent from receiving any payment under the Letter of credit dated 27th July, 2006.
(3.) FACTS of the case briefly are as follows:- Under an agreement dated 29th May, 2006 respondent agreed to supply Extra hard Pitch (hereinafter referred to as "the said goods") to the respondent as per schedule set out in the said agreement. The terms of payment was that a Letter of Credit will be opened by the petitioner in favour of the respondent and the payment was to be made "at sight". Accordingly, the petitioner opened the said irrevocable Letter of Credit in favour of the respondent. The document against which payment was to be made was received directly by the banker of the petitioner and upon presentation of document, it was found by the petitioner's bankers by a letter dated 11th September, 2006 that the description of the goods was not as per Letter of Credit terms. Accordingly, banker sought advice of the petitioner in this regard whether the petitioner was willing to waive the discrepancies. The petitioner by a letter dated 3rd october, 2006 waived the discrepancies and accepted the document. Correspondences were exchanged between the parties and the letter of Credit was amended and payment "at sight" was substituted to "230 days from the shipment date" and therefore, the payment would be payable on 10th April, 2007. The said amendment was informed to the "respondent's banker and was accepted. ;