JUDGMENT- Mrs. SUJATA MANOHAR, J.:---The appellant-Bank is the original plaintiff while respondents 1 and 2 are the original defendants 1 and 2. On or about 10th July, 1974 Mellon Bank International, New York, opened an irrevocable letter of credit for U.S. $1,63,755.00 equivalent to Rs.12,77,496 at the instance of Messrs Loosin International, New York in favour of Messrs Mixmum Export Import Pvt. Ltd. The letter of credit was in respect of readymade garments to be shipped by M/s. Mixmum Export Import Pvt. Ltd. to New York on or before 5th September, 1974. Under the letter of credit drafts had to be drawn by the beneficiary "at 90 days sight" on Mellon Bank International. The appellant-Bank as advisory bank informed M/s. Nirman Export Import Pvt. Ltd. about the opening of this letter of credit.

2. In or about July, 1974 a part of the credit under this letter of credit amounting to U.S. $42,600 (Rs.3,31,517.50) was transferred to Laffans India Exports Pvt. Ltd., the 1st respondent herein.

3. Under this letter of credit the 1st respondent drew on Mellon Bank International six Bills of Exchange in favour of The New Bank of India Ltd., who are the 2nd respondent herein. Of these Bills o

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