AMIRA FOODS INDIA LIMITED Vs. OOO PATRIOT

JUDGEMENT

(1.) By this order I propose to dispose of the application (I.A.No.7427/1998) filed by the applicant, The Bank for Foreign Economic Affairs of USSR under Section 151 of the Code of Civil Procedure for vacation of the interim injunction passed by this court on 22/4/1998 and 23/4/1998 on I.A.No.3388/1998 in Suit No.781/1998.

(2.) The plaintiff instituted a suit against three defendants seeking for a decree for declaration that the date of shipment under the contract agreement dated 30/1/1998 between the plaintiff and defendant No.1 is deemed to be extended for a period of 30 days from the date on which the permission is granted by defendant No.1 or deemed to be granted by this court for loading to Cargo of 7000 MT of rice as specified under the contract. The plaintiff also sought for a declaration that the validity of the letter of credit dated 5/2/1998 issued by the Canara Bank in favour of the plaintiff deemed to be extended, and also sought for a restraint order restraining defendant No.3, the Reserve Bank of India from remitting back or transferring the amount of Rs.8,92,50,000.00 only to the Bank for Foreign Economic Affairs of USSR lying with defendant No.3 under the Rupee Rouble Trade for payment under the Letter of Credit dated 5/2/1998 issued by the Canara Bank. On 22/2/1998 an order was passed by this court directing the Reserve Bank of India to maintain status quo regarding repatriation of the amount of the letter of credit dated 5/2/1998. On 23/4/1998 while issuing notice on the application seeking for injunction this court ordered that the defendant No.3 would not repatriate the amount held by them against the Letter of Credit dated 5/2/1998.

(3.) The plaintiff entered into an agreement with defendant No.1 to supply 7000 MT of rice to defendant No.1. The plaintiff executed a performance guarantee in the sum of 40,000 Dollars with the buyer's Bank in Russia whereas the applicant transferred by a Letter of Credit dated 5/2/1998 a sum of INR 2,23,12,500.00 which is to the extent of 25% of the contract value. It is stated by the plaintiff that the plaintiff in compliance of the terms and conditions of the contract sent the goods to Kandla Port for shipment which were duly inspected by the agents of defendant No.1 but the same could not be shipped because instructions for shipment were not given by the defendants No.1 & 2 inspite of letter of the plaintiff dated 13/4/1998. It is stated that the plaintiff has fulfilled its part of the agreement and the said defendants 1 & 2 have committed breach of the contract and therefore, the plaintiff has sought for an order of injunction restraining the Reserve Bank of India, the defendant No.3 from remitting back or transferring the amount held by them against the letter of credit dated 5/2/1998.