JUDGMENT

K. RAMASWAMY, J.- Special leave granted.

2. The solitary question is whether the first respondent M/s Calcutta Steel Co. Ltd., plaintiff, for short "CSC" is the drawee-acceptor of the impugned bills of exchange. The admitted facts are that the appellant/first defendant is the banker. The CSC, obtained licence No. OGL 6/86, dated April 1, 1986 to import steel billets. The Government of Indias import policy for 1985-88 was that iron and steel etc. should be imported through canalised agency i.e. M/s Minerals and Metals Trading Corpn. of India Ltd., for short "MMTC", the 3rd defendant/3rd respondent. By letter dated November 12, 1986 CSC approached MMTC for letter of authority to import the goods and by letter dated November 18, 1986, copy addressed to M/s Harlow & Jones Ltd., London, the supplier, the latter permitted CSC to draw draft on "MMTC A/c Calcutta Steel Co. Ltd., 20, Hemanta Basu Sarani, Calcutta-700001 for a sum not exceeding US $ 1,456,000 (US Dollars one million four hundred fifty-six thousand only), payable to the beneficiary on presentation of a separate draft... at 180 days from the date of bill of lading drawn for 100 of the invoice value and accompanied by