ORDER :

Ashok Bhan, J.

M/s. ITC Limited, agriculture business division, Secunderabad applied to the State Bank of India, appellants herein, for issue of a bank draft for a sum of Rs. 27,98,500/- and the other for a sum of Rs. 1,63,28,500/- in favour of M/s. Soya Udyog Ltd., the respondent herein. Acting on the request of M/s. ITC Ltd. the appellants herein issued demand draft No. 150683 on 16.1.1993 for a sum of Rs. 27,98,500/- and another demand draft No. 150865 dated 18.1.1993 for Rs. 1,63,28,500/-. The aforesaid two demand drafts were handed over by the appellants to the purchaser M/s. ITC Limited. M/s. ITC Limited, in turn, handed over the said demand drafts to the respondent herein towards consideration for supply of de-oiled cake, which was the business transaction.

2. It is alleged by the respondent that the aforesaid two demand drafts were lost in transit when one of its directors was coming from Secunderabad to Indore. It is also alleged that on 23.1.1993 the first information report in regard to the loss of the aforesaid two demand drafts was lodged with the police station. The respondent thereafter wrote to the appellants herein for issue of duplicate drafts in lieu of the