S.S. Parkar, Chairperson—The only point which is required to be considered in these two appeals is whether in view of the terms and conditions of the letters of credit dated 5th August, 1991, the bills of exchange dated 5th August, 1991 drawn by the appellants, Western Ministil Limited and discounted by the respondent No. 1-the Bank of Rajasthan Limited can be said to be “without recourse” to the drawers. The said point is required to be considered in the following facts and circumstances.

2. The respondent No. 3 Virgo Steels had placed Orders on the appellants, Western Ministil Limited for supply of R.C.S. billets sometime in the months of July and August, 1991. The payment was to be made under the letters of credit against the bills of exchange which were accepted by the buyers. The respondent No. 3 who were constituents of the respondent No. 2 the U.Co., Bank had got irrevocable letters of credit issued from the U.Co., Bank on 5th August, 1991 in favour of the appellants. The said letters of credit were without recourse to the vendors of the goods i.e. the appellants. The letters of credit could be negotiated by any Bank. The bills of exchange were not marked as “without