Lord Diplock:

The question in this appeal from the Court of Appeal in Singapore is whether the respondent (the issuing bank) was entitled to debit the appellant (the customer) with the sum of $139,496.43 paid by the Bank of Taiwan (the notifying bank) to Messrs Thai Lung Ship Machine Manufactory (the beneficiary) under an irrevocable documentary credit opened by the issuing bank on the instructions of the customer. The credit was expressed to be subject to the Uniform Customs and Practice for Documentary Credits (1962 Revision).

The customer is a company carrying on business in Singapore. Its managing director was Balwant Singh. The credit was opened on the application of the customer to finance the purchase by a third party, at a price of US$45,000, of a fishing vessel built in Taiwan. Payment under the documentary credit was to be made against presentation of a draft at sight, drawn on the customer and accompanied by signed commercial invoices in duplicate, and a certificate of origin, together with a document referred to under the heading 'Special Notes' upon the back of the application for the credit.

This read as follows:

A specific condition of this L/C is that a