Kolkata, Dec. 5 -- An export shipment to Bangladesh has led to a four-country payment dispute, with the Calcutta High Court declining to remove a Philippines-based bank from a commercial suit concerning alleged non-payment under a letter of credit. The bench of Justice Aniruddha Roy held that the bank's involvement in the transaction must be examined at trial after two versions of a key communication emerged, each naming a different sender. The dispute relates to the supply of about 196.02 metric tonnes of goods by the plaintiff to a buyer in Bangladesh. Payment was arranged through an irrevocable and unconditional letter of credit for USD 177,000 issued in August 2023.
Banks in the Philippines, Malaysia, Bangladesh and India were involved in handling the issuance, transmission and negotiation of the documents. Part of the sale consideration was released, but the plaintiff claims that the remaining amount has not been paid. The plaintiff alleges that the buyer and several banks acted in collusion and conspiracy, and that original negotiable documents were released in a manner that allowed the buyer to take delivery of the goods without paying the full amount. One version of the document placed by the plaintiff shows the Philippines-based bank as the "Swift Output Sender," while another version produced by that bank identifies a Malaysian institution as the sender. The bank sought deletion from the suit on the ground that it did not act as the issuing, confirming or nominated bank and that no obligation could arise against it.
Justice Aniruddha Roy held that the plaint contains specific allegations involving the bank and that the contradictory documents raise issues requiring evidence. The court observed that the truth of the assertions can be determined only at the time of trial and refused to reject the plaint against the bank. The court also confirmed previous injunction orders restraining withdrawals from specified bank accounts unless a balance equivalent to USD 110,000 is maintained. The interim protection will continue until the suit is finally decided, with the court holding that the matter raises triable issues warranting continuation of the restraint.The dispute relates to the supply of about 196.02 metric tonnes of goods by the plaintiff to a buyer in BangladeshBanks in the Philippines, Malaysia, Bangladesh and India were involved in handling the issuance, transmission and negotiation of the documentsThe Philippines bank sought deletion from the suit on the ground that it did not act as the issuing, confirming or nominated bank and that no obligation could arise against itThe court observed that the truth of the assertions can be determined only at the time of trial and refused to reject the plaint against the bank
Published by HT Digital Content Services with permission from Millennium Post.