IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 25.02.2021

CORAM

THE HONOURABLE MR.JUSTICE T.RAJA

AND

THE HONOURABLE MR.JUSTICE P.RAJAMANICKAM

A.S.No.947 of 2020

1.Standard Chartered Bank,

Small Medium Enterprises Banking

Consumer Banking,

Rep. By its Regional Sales Manager

Mr.K.Satish,

No.8, Haddows Road,

Chennai – 6.

2.Standard Chartered Bank,

Rep. By its Manager,

No.19, Rajaji Salai Branch,

Chennai – 1.

.. Appellants/ Defendants

Versus

M/s.Olympics Cards Limited,

Rep. By its Managing Director

Mr.N.Mohammed Faizal,

Having its registered Office at

No.195, N.S.C. Bose Road,

Chennai – 1.

.. Respondent/Plaintiff

Prayer: First Appeal has been filed under Order 41 Rule 1 read

with Section 96 of Civil Procedure Code, against the judgment

and decree dated 29.11.2019 passed by VI Additional City Civil

Court Judge, Chennai, in O.S.No.5239 of 2019.

For Appellants

: Mr.M.S.Murali

for M/s.R & P Partners

For Respondent

: Mr.K.Sankaran

JUDGMENT

(Judgment of the Court was delivered by T.RAJA, J.)

The defendants in the suit are the appellants and the

plaintiff in the suit is the respondent.

The

defendants/appellants herein have filed this appeal

challenging the impugned judgment and decree dated 29.11.2019

passed in O.S.No.5239 of 2019 by the learned VI Additional

City Civil Court Judge, Chennai, partly decreeing the suit

https://hcservices.ecourts.gov.in/hcservices/

with a direction to the defendants/appellants to pay a sum of

Rs.33,13,634.39/- to the plaintiff with interest at 9% per

annum from the date of plaint till the date of judgment and

again with further interest at 6% per annum from the date of

judgment till the date of realization.

2. For the sake of convenience, the parties will be

referred to as arrayed in the original suit.

3. It is averred in the plaint that the plaintiff's

Company was incorporated on 21.04.1992 to carry on business of

manufacturers, importers, exporters, dealers and retailers in

all types and varieties of stationery, wedding cards,

invitations, greeting cards, etc. They are having their bank

account with the second defendant bank. It is the claim of

the plaintiff that the defendant bank after satisfying with

the financial requirement of the plaintiff sanctioned credit

facility by Banking Arrangement Letters dated 02.03.2007,

11.10.2007 and 03.04.2008 as stated below:-

a) Overdraft Rs.6,45,00,000/-

b) Term Loan-1 Rs.1,50,00,000/-

c) Term Loan-2 Rs.1,00,00,000/-

d) Import Letter of Credit Rs.50,00,000/-

e) Inland Letter of Credit Rs.12,50,000/-

f) Housing Loan in the name of H.Noormohamed

and S.Jarina Rs.1,50,00,000/-

The plaintiff in order to extend his business resolved to

import printing machines from Germany, and therefore, when the

plaintiff approached the defendant bank for Letter of Credit

for a sum of Euro 2,16,800/- favouring HEIDSLBERGER, Germany,

the Bank has also issued a Letter of Credit to the plaintiff.

Thereafter, as requested by the Bank, the plaintiff also

deposited a sum of Rs.20 lakhs towards the margin money for

the Letter of Credit and another sum of Rs.3 lakhs on

10.04.2006 for forward contract. However, it is alleged, the

defendant bank without issuing forward contract delayed the

process. Therefore, the plaintiff made an oral request to

open forward contract, but, the defendant bank was negligent

in opening the forward contract as on 24.02.2006, hence,

again, the plaintiff said to have made a request to open fixed

deposit for Rs.3 lakhs on 29.03.2006, but, it was opened only

on 07.04.2006. Finally, the second defendant bank opened the

forward contract on 26.04.2006 for the value of Euro

1,70,000/- instead of Euro 2,16,800/-. When the date of

Letter of Credit was mentioned as 24.07.2006, the due date

under the Letter of Credit was mentioned as 18.08.2006 and

value of Euro rate was 53.3947880. But, on th