https://www.taxtmi.com/caselaws?id=179569 A letter of credit remains an independent and autonomous payment instrument, so disputes under the underlying sales contract, including alleged force majeure or deferred-payment arrangements, cannot ordinarily be imported to restrain encashment. Judicial interference is available only where fraud of an egregious nature is clearly established and the bank knew of the fraudulent demand at the relevant time; on the stated materials, that threshold was not met. The bank's obligation continued to be governed by the credit and documentary-credit rules, not by later or unincorporated contractual understandings. The article concludes that no prima facie basis existed for interlocutory restraint of the credit. 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 A letter of credit remains an independent and autonomous payment instrument, so disputes under the underlying sales contract, including alleged force majeure or deferred-payment arrangements, cannot ordinarily be imported to restrain encashment. Judicial interference is available only where fraud of an egregious nature is clearly established and the bank knew of the fraudulent demand at the relevant time; on the stated materials, that threshold was not met. The bank's obligation continued to be governed by the credit and documentary-credit rules, not by later or unincorporated contractual understandings. The article concludes that no prima facie basis existed for interlocutory restraint of the credit. Case-Laws Indian Laws Fri, 08 May 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179569