1. The appellant bank before this Court was the defendant before the trial court against whom both the courts below have decreed the suit filed by the plaintiff/respondent herein for a sum of Rs.1,26,650.65/-with interest at the rate of 6% along with costs on the ground that the irrevocable letter of credit was opened in his favour by the Bank of Baroda, London only after negotiating the documents called for in the credit with the defendant State Bank of India and the defendant bank also accepted the documents and thereupon credited the value of bill of exchange to their current account with a sum of Rs.80,664.40 on 27.11.1980. This was also on yet another basis that once the negotiation was completed the matter comes to an end so far as the plaintiff is concerned.

2. Brief facts leading to the filing of the present Second Appeal are given as under:

(i) The plaintiff/respondent is an export firm engaged in the export of Handloom Textiles and other General Merchandise for several years. Whileso, the plaintiff entered into an agreement for supply of certain quantity of Real Madras Hand Kerchiefs to M/s Optimistic International Company in Catonou Republic of Benin through the