Valmiki J. Metha, J

Oral:

1. This suit being CS(OS) No.176/1997 has been filed by the plaintiff for recovery of Rs.24,57,062/-against two defendants. The first defendant-company was the buyer of goods being H.R.coils from the plaintiff. Defendant no.2 is the banker which issued the letter of credit through which payment was to be made for the goods sold by the plaintiff to the defendant no.1.

2. The case of the plaintiff as pleaded in the plaint is that the plaintiff agreed to sell 17 H.R.Coils weighing 180.340 Metric Tonnes (MTs) to the defendant no.1, and for payment of which, the defendant no.1 was to open an irrevocable letter of credit besides providing a cheque as collateral security. The defendant no.1 opened an irrevocable letter of credit with the defendant no.2-bank dated 12.4.1993. There is an amendment to this letter of credit issued on 4.5.1993 for extending the period for enforcing the letter of credit from 15 days to 30 days from the date of dispatch/shipment of the goods. The letter of credit was issued for an amount not exceeding 34 lacs. The plaintiff sold the goods to the defendant no.1 under the invoice No.48 dated 17.4.1993. The value of the goods wa