NISHANT
When bank can be absolved of its liability to honour letters of credit.
NISHANT MEHROTRA 31 Jan 2018

When bank can be absolved of its liability to honour letters of credit.

SC :: When bank can be absolved of its liability to honour letters of credit.


Bank is liable to make payment against letters of credit, however subject to fulfillment of the condition precedent for Making payment as agreed between the parties that the goods supplied shall be of quality conforming to either original agreement or letters of credit.As the goods supplied did not fulfil the said condition the bank was absolved of its liability to honour letters of credit(para 7) .



Case:

State Bank of India Vs Manganese Ore (India) Ltd.



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