https://www.taxtmi.com/caselaws?id=179569 Letters of credit operate independently from the underlying sales contract, so alleged force majeure or deferred-payment arrangements outside the credit do not justify restraining encashment. A confirming bank's obligation is governed by the credit terms and applicable documentary-credit rules, not subsequent arrangements between contracting parties. Interlocutory restraint requires clearly established egregious fraud known to the bank when documents are presented, or another recognised special equity. As neither the requisite fraud nor the bank's knowledge was shown, the ex parte protection against encashment was vacated. en-us Fri, 08 May 2009 00:00:00 +0530 Fri, 04 Mar 2016 12:37:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179569 Letters of credit operate independently from the underlying sales contract, so alleged force majeure or deferred-payment arrangements outside the credit do not justify restraining encashment. A confirming bank's obligation is governed by the credit terms and applicable documentary-credit rules, not subsequent arrangements between contracting parties. Interlocutory restraint requires clearly established egregious fraud known to the bank when documents are presented, or another recognised special equity. As neither the requisite fraud nor the bank's knowledge was shown, the ex parte protection against encashment was vacated. Case-Laws Indian Laws Fri, 08 May 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179569