Remanded

M/S Supreme Overseas Export India P Ltd. v. State Bank of Travancore

Karnataka HC21 Jun 2013MFA/1301/2013

Case brief

AI extract

What is this about?

This appeal challenged an interlocutory order rejecting an application for injunction in a commercial dispute involving letters of credit. The High Court found that the trial court had failed to consider the plaintiff's contention regarding a fake health certificate, a material issue, and remanded the matter for consideration with a stay on payment by the bank.

What did the court decide?

The impugned order rejecting the application for injunction was set aside, the matter was remanded to the trial court to consider the contention regarding the health certificate, and the bank was rest

M/S Supreme Overseas Export India P Ltd… — Contract and Commercial Disputes | Karnataka HC (2013)

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M.F.A.No.1301/2013

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IN THE HIGH COURT OF KARNATAKA AT BANGALORE

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DATED THIS THE 21ST DAY OF JUNE 2013

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BEFORE

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THE HON'BLE MR. JUSTICE H.G.RAMESH

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MISC.FIRST APPEAL No.1301/2013

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BETWEEN : M/S SUPREME OVERSEAS EXPORT INDIA (P) LTD. A COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT, 1956 HAVING ITS REGISTERED CORPORATE OFFICE AT 11/1, 24TH A CROSS, K R ROAD, BANASHANKARI II STAGE BANGALORE-560070 REPRESENTED BY ITS MANAGING DIRECTOR MR M S SHRIHARSHA. ...APPELLANT

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( By Sri.JOSHUA H.SAMUEL, ADVOCATE. FOR CARIAPPA & CO., ADVOCATES)

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AND :

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1 STATE BANK OF TRAVANCORE (ASSOCIATE OF THE STATE BANK OF INDIA) HAVING ITS BRANCH OFFICE #10, AISHWARAYA CASTLE, CASTLE STREET NEAR BRIGADE TOWERS BANGALORE-560025 REPRESENTED BY ITS DEPUTY GENERAL MANAGER

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2 FRENCH LEATHER FACTORY PO BOX 355405 RIYADH 11383 KINGDOM OF SAUDI ARABIA

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M.F.A.No.1301/2013

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REPRESENTED BY ITS AUTHORISED SIGNATORY MR RONALD ATIK.

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...RESPONDENTS

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( By Sri.V.VIJAYKUMAR, ADVOCATE. FOR R-1; MURALI & CO., ADVOCATES. FOR C/R-2; SRI.SHASHIKIRAN SHETTY, ADVOCATE. FOR R-2)

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THIS MFA IS FILED U/O-43, RULE 1(r) OF THE CPC, 1908, AGAINST THE ORDER DATED:31.1.2013 PASSED ON I.A.NO.1 IN O.S.NO.26084/2012 ON THE FILE OF 28TH ADDITIONAL CITY CIVIL JUDGE, MAYOHALL, BANGALORE (CCH NO.29), REJECTING THE APPLICATION I.A.NO.1 U/O-39, RULE 1 & 2 OF CPC.

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THIS APPEAL COMING ON FOR ADMISSION THIS DAY, THE COURT DELIVERED THE FOLLOWING:

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J U D G M E N T

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H.G.RAMESH, J. (Oral):

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This appeal is by the plaintiff and is directed against an interlocutory order dated 31.1.2013 passed by the trial court on the application filed by the plaintiff under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure. By the impugned order, the trial court has rejected the application – I.A.No.1, which was filed to restrain respondent No.1 - Bank from making any payment in respect of the four letters of credit referred

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M.F.A.No.1301/2013

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to in the application.

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Learned Counsel on both sides, after arguing the

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matter at length, submitted that the impugned order may be set aside and the matter may be remitted to the trial court for consideration of the contention re. health certificate which is not considered by the trial Court. The contention re. health certificate which is stated to have been urged by the plaintiff but not considered by the trial court is referred to at para-3 of the impugned order, which reads as under:

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“3. . . . . . . Even though, he assured the replacement of the said defective goods by sending two containers, without sending the original document to the plaintiff, the 2^nd defendant has used the fake health certificate to produce the requirement of the goods shipped, thereby the second defendant has not only played fraud on the plaintiff but also on the defendant No.1. The first defendant nevertheless has accepted the same without verification and there being no compliance of the requirement of the documents. If the amount under the letter of credit is released, the plaintiff company would be put to irretrievable damage and losses as the 2^nd defendant

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M.F.A.No.1301/2013

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company is based out of Riyadh, Soudi Arabia, as such the plaintiff company would not be in a position to recover the amounts paid to the second defendant under the letters of credit.. . . . .”

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(underlining supplied)

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Learned Counsel on both sides also submit that the

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parties will fully co-operate with the trial court and accordingly the trial court may be directed to dispose of the application as expeditiously as possible.

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As the contention re. health certificate is not considered by the trial court, I accept the joint submission made by the learned Counsel on both sides and accordingly make the following order:

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i) the impugned order dated 31.1.2013 rejecting I.A.No.1 is set aside; the matter is remitted to the trial court only to consider the contention re. health certificate urged by the plaintiff and to pass orders on I.A.No.1;

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ii) as sought for by the learned Counsel on both

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M.F.A.No.1301/2013

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sides, both the parties are permitted to produce additional documents on the aspect of health certificate with supporting affidavits within one week from the first hearing date;

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iii) the trial court is directed to dispose of the application as expeditiously as possible and in any event within four weeks from the date of receipt of a copy of this order;

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iv) respondent No.1 – State Bank of Travancore is restrained from making any payment in respect of the four letters of credit till the disposal of the application – I.A.No.1 by the trial court.

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The appeal stands disposed of in the above terms.

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Sd/JUDGE

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KNM/-

M/S Supreme Overseas Export India P Ltd. v. State Bank of Travancore

Case brief

What is this about?

What did the court decide?

M/S Supreme Overseas Export India P Ltd. v. State Bank of Travancore

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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