ORDER

This appeal by special leave arises from the judgment of the Division Bench of the Bombay High Court made on October 30-31, 1979 in Appeal No. 163/71.

2. The first respondent-Manganese Ore (India) Ltd. laid the suit against the appellant and M/s. Emmenor Export Traders, the first defendant to recover the suit amount in the sum of Rs.1,69,000/- and odd. The trial Court in Special Suit No. 91/69 by judgment and decree dated April 30, 1971 decreed a sum of Rs.1,66,191.10 as against the first defendant. On appeal by the first respondent, the High Court reversed the decree as against the appellant and made the appellant liable to pay over the same. When the leave was granted by this Court, the appellant was directed to deposit the decretal amount and the first respondent was given liberty to withdraw the amount on furnishing adequate security to the satisfaction of the Registrar of the High Court.

3. The question in this case is: whether the appellant is liable to honour the letters of credit entered into between the appellant and M/s. Emmenor Export Traders? The admitted position is that under the letters of credit a conditional contract was entered into between the appellant and t