JUDGMENT

Harjit Singh Bedi, J. —

1. This appeal arises out of the following facts.

2. The appellant, Krishna Gopal Kakani, the proprietor of M/s. Oriental Traders, a concern involved in the manufacture and import of goods, obtained a letter of authority from the Chief Controller of Imports and Exports, Bombay for the import of raw material for the benefit of a licensee who had been given an import licence. The appellant accordingly placed orders with a foreign supplier for the import of specified goods and for that purpose approached the respondent-Bank for opening Letters of Credit for two consignments. The bank thereupon opened two Letters of Credit, one on 24th August 1973, and the other on 21st September 1973 on which he also deposited 10% of the margin money of Rs.4560/- and Rs.4810/-. The other formalities having been completed, the Letters of Credit were duly negotiated on 21st January 1974 and 19th March 1974. The consignment arrived in India on 13th March, 1974 but despite the requests made by the appellant and his clearing agent, the Bombay Customs refused to release the goods without assigning any reason, though on enquiry from the Joint Chief Controller of Imports and Expo