Aggrieved over the judgment and decree of the trial Court decreeing the suit for recovery of money, the present appeal came to be filed by the 1st defendant, namely, the State Bank of India.

2. For the sake of convenience, the parties are referred to, as per their ranking before the trial Court.

3. Facts and circumstances giving rise to this appeal are:

(i) The plaintiff a registered Firm, has account with the 1st defendant Bank and had bill discount facility. The defendants 2 to 4 are the dealers in handloom and textile goods having business transaction with the plaintiff while the defendants 5 and 6 are the public carrier. The 7th defendant is the Bank in Nepal, negotiated by the 1st defendant bank for collection in respect of Letter of Credit (L/C) amount due from the customer of the plaintiff. The plaintiff supplies goods to defendants 2 to 4 against irrevocable L/C issued by 7th defendant. The plaintiff negotiated with the 1st defendant bank for collection of bill under various invoices raised against the defendants 2 to 4. The plaintiff despatched goods through public career, the 6th defendant and entrusted the goods at Coimbatore for transport via Madras to Kathmandu,