( 1 ) THIS is a suit for recovery of Rs. 6,50,970. 42 paise. The plaintiff is State Bank of India which is authorised to deal in foreign exchange under the Foreign Exchange Regulation Act, 1947. While the defendant No. 1 is Earnest Traders, a partnership firm dealing in the business of exports and imports, the defendant No. 2 is one of its partners.

( 2 ) BY letter dated June 6, 1973, defendant No. 2 on behalf of defendant No. 1 forwarded to the plaintiff photostat copies of Five contracts executed by and between the defendants and M/s. Century Rayon, Bombay, and M/s. Indian Rayon Corporation Limited, Bombay, for shipment of Rayon Filament Yarn to Afghanistan Against dollar payment to be received from M/s. Sharvan D. Sethi, Kabul during the period from June 1973 to December 1973. As per the letter, the total quantity of Rayon to be exported to Afghanistan came to 210,000 kgs. The aggregate value of the same as per the following details was Rs. 40,38,500. 00 :-

1. Century Rayon: 180,000 kgs. valued at Rs. 36,11,000. 2. Indian Rayon : 30,000 kgs. valued at Rs. 4,27,500.

( 3 ) ALONG with the letter a copy of the letter dated June 4, 1973 received from M/s. Sharvan D.