- (1.) THE plaintiff, F. Ahmed & Co., a partnership firm instituted the above suit in the year 2006 primarily for recovering the amounts covered by four irrevocable letters of credit of different dates issued by the second defendant, Janata Bank of Bangladesh at the instance of the first defendant, Md. M, A. Shahid in favour of the plaintiff. THE cause of action of the plaintiff is based on the allegations that the second defendant, Janata Bank failed to make payments covered by the said irrevocable letters of credit in spite of presentation of proper documents by the plaintiff for obtaining such payments in its favour.
(2.) BRIEFLY stated, the case of the plaintiff as made out in the plaint proceeds on the basis that since the business of the plaintiff is to export of various commodities including onion, in the year 2004, some representatives of the first defendant, Md. M. A. Shahid who was carrying on business in Dhaka, Bangladesh came to visit the plaintiffs place of business in Calcutta, to be precise at Baitakkhana Road and "offered to purchase on a regular basis substantial quantities of onion of Indian origin at NAFED rates". For making payments for supply of onions the Banker of the first defendant, namely the second defendant would issue irrevocable letters of credit at the instance of the first defendant favour of the plaintiff. The arrangement was that the supply of onion would be made to the first defendant only upon irrevocable letters of credit covering the amount of each supply or consignment, so to say. On the above basis, from time to time the first defendant placed orders for supply of onions of Indian origin of diverse quantities and the plaintiff in his turn supplied such quantities of onion and for making payments for such supply the first defendant instructed his Banker, the second defendant herein to issue irrevocable letters of credit in favour of the plaintiff (specifying the documents required for negotiations). The second defendant, Janata Bank in Bangladesh issued letters of credit in favour of the plaintiff on the basis of such instruction of the first defendant.
(3.) FOR the sake of convenience the particulars of the four letters of credit being the subject-matter of the suit are mentioned below :- [1] LC No. 0442 dated 20 October 2004 US $ 40,700 [ii] LC No. 0009 dated 3 January 2005 US $ 20,000 [iii] LC No. 0026 dated 12 January 2005 US $ 20,000 [ivj LC No. 0034 dated 16 January 2005 US $ 20,000 Total US $ 100,700" Upon receipt of the above letters of credit the plaintiff in due discharge of its obligation supplied onions of agreed specification by various invoices of different dates and after effecting such supply the plaintiff had duly submitted all the necessary documents for the purpose of negotiation of the above letters of credit. The said documents were duly made over to the second defendant by the plaintiffs Banker, the third defendant herein for the purpose of receiving payments from the second defendant on the basis of the above letters of credit.;