TaxTMI 
TaxTMI 
2004 (6) TMI 620
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.... cause of action as pleaded in the plaint had arisen within the original jurisdiction of the Court. The plaint was consequently directed to be taken off the file and returned to the appellants for presentation to the Court having jurisdiction to entertain the suit. 3. The suit had been filed in 1995 by the appellants against the respondent alleging that the appellant had supplied goods pursuant to an agreement between the appellant No.1 and a German company, named Kleinsorge (hereinafter referred to as the 'Company'). Payment for the goods supplied was to be made by way of letter of credit. The letter of credit was accordingly issued by the respondent at the instance of the Company in favour of the appellant No.1 for an amount of D....
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....re was no discrepancy in the said documents and till date, no complaint has been received from either the defendant or the Advising Bank or the purchaser in that regard. Payment under the said letter of credit was to be made at the office of the UCO Bank at 4 & 4/1, Red Cross Place, Calcutta 700 001, within the aforesaid jurisdiction." 4. On the allegation that inspite of request and demand, the respondent did not make any payment under the letter of credit, the appellants filed the suit for an amount of Rs. 7,01,670.36, further interest and other reliefs after obtaining leave under clause 12 of the Letters Patent. 5. Clause 12 of the Letters Patent which applies to the original jurisdiction of the Calcutta High Court empowers the High Co....
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....en statement was ultimately filed by the respondent after extensions of time were sought and obtained, on 31st July 1998. The respondent filed its documents on 10th August 1999 and the suit has been ready for hearing since that date. 8. On 30th August 1999, the respondent made an application for revocation of leave under clause 12 of the Letters Patent on the ground that no part of the cause of action arose within the jurisdiction of the Calcutta High Court. The learned Single Judge dismissed the application. 9. The Division Bench accepted the submission of the respondent that although the pleadings in the plaint showed that the Calcutta High Court had jurisdiction to entertain the suit, the averments in the plaint were not borne out by t....
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....lleged to be a part of the cause of action did not form part of the cause of action at all. This the Division bench did not do. It was not open to the Division Bench to come to a contrary factual conclusion in respect of any of these three grounds. The appeal is, therefore, liable to be allowed on this ground alone. 12. Before us the respondent has submitted that even though the documents were presented by the appellants within the jurisdiction of the Calcutta High Court as claimed by it, there was no authorisation in favour of UCO Bank to accept presentation of the documents. It is said that the UCO Bank was only an advising bank and it was neither the confirming nor the negotiating bank and that therefore there was no valid presentation ....
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....pellant who has referred to Benjamin's Sale of Goods. What the role of UCO Bank in fact was is a mixed question of law and fact. At present, since we have to determine the court's jurisdiction ex facie the plaint, we cannot proceed on the assumption that UCO Bank was not authorised to receive the documents or that the payment under the Letter of Credit was to be made, as far as the appellants are concerned, at Dusseldorf. Ultimately it will depend upon whether UCO Bank was acting for the Respondent or the appellants. All these matters will have to be decided on evidence and cannot be decided on an application for revocation of leave under Clause 12 of the Letters Patent. 15. The observations of Rankin CJ in Secretary of State v. Gu....