A.K. Gohil, J.

1. The appellant/defendant Bank has preferred this first appeal under section 96 of the Code of Civil Procedure being aggrieved by the judgment and decree dated 3-2-2000 passed by the Special Additional District Judge, Indore in Civil Original Suit No. 17-B/1999 whereby decreed the suit of the respondent/plaintiff for a sum of Rs. 23,54,707.58 ps. along with interest @ 11% per annum from the date of the filing of the suit till its recovery with costs.

2. The brief facts of the case are that on 8-9-1997 respondent/plaintiff filed a suit for recovery of Rs. 23,54,707.58 ps. on the pleadings that at the material time the respondent/plaintiff was the Proprietor of M/s Oriental Traders, a concern which was dealing as manufacturers representatives, commission agent, Importer and I/A holder. The said firm has now stopped its business but is still in existence. The respondent/plaintiff obtained Letters of Authority from the Joint Chief Controller of Imports and Exports, Bombay for importing raw materials on account of the Licensees to whom the Import licenses had been granted. After receiving letter of Authorities, respondent/plaintiff placed orders with the Foreign suppliers for the import of Raw Materials namely - (i) 59 Cartons of Whatman Filter Papers; and (ii) 224 Cartons of "SASOO" Branch pure olive oil. The respondent/plaintiff approached the appellant/defendant Bank for opening Letters of Credit for the above mentioned two import Consignments. The appellant/defendant Bank opened the letters of credit on 24-8-1973 as L.C. No. INDI/7123 and on 21-9-1973 numbered as L.C. No. INDI/7139. The respondent/plaintiff deposited the margin money to the extent 10% of the value of the raw materials and deposited Rs. 4,560.00 on 24-8-1973 for L.C. No. 7123 and Rs. 4,810.00 on 21-9-1973 for L.C. No. 7139. Thereafter the respondent/plaintiff complied with various formalities and Regulations like submitting the exchange control copies of the Licenses, Letters of Authority along with the endorsement and negotiated the Letters of Credit on 22-1-1974 and 19-3-1974.

3. The imported consignments arrived in India on 13th March, 1974. As soon as the first consignment was off-loaded at Bombay Port, the respondent/plaintiff with his Clearing Agent went to clear the goods. The Bombay customs refused to clear the consignments, without giving any reasons. The respondent/plaintiff enquired with the Joint Chief Controller of Imports and Exports at Bombay where he was informed that the office of the Joint Chief Controller had no objection to the consignments being released by them. In the meantime the Port Trust issued notices to clear the goods quickly as heavy demurrage was being incurred for non-clearance. The appellant/defendant apprehending auction of the goods by the Port Trust, rushed to the Hon'ble High Court in their capacity of Joint Holder of the Import Licences for safeguarding their goods. The appellant/defendant Bank was Joint Holders of the Import Licenses by virtue of having paid the value of the Import consignment in foreign exchange. Thereafter the appellant/defendant Bank filed four Misc. Petitions before the Hon'ble Bombay High Court. One in respondent's/plaintiffs matter numbering Misc. Petition No. 950 of 1975. In the said petition, the respondent/plaintiff was also made as respondent No. 7.

4. In the said petition, the appellant/defendant Bank had stated the facts of the case which are reproduced in the plaint as para No. 9(A) to 9(Y), out of that the material paras are 9(E) in which it was submitted that the appellant/defendant Bank had requested the Drug Controller to grant permission to clear the said goods from the customs in terms of paragraph 312 Appendix 29 of Hand Book, of Rules and Procedure 73-74. As per the terms of paragraph 312 of the I.T.C. Hand Book of Rules and Procedure 1974 the Customs Department could have no objection of any sort to the clearance of the said consignment having regard to the fact th