RE: Legal opinion regarding removal of the bills from the record and close the file accordingly
We refer to your letter dated 24 May 2007 on the above subject.
From perusal of your letter and the attached documents it appears that COMPANY 1 (“COMPANY 1”) concluded a contract with COMPANY 2 (“COMPANY 2”) for supply of 100 per cent cotton gray fabric to be imported by the COMPANY 1. The COMPANY 1 opened an irrevocable Letter of Credit in the BANK 1 for import of the same for US $ 1,09,480.00 on the terms that payment under L/C would be payable subject to the fulfillment of all other terms and conditions of the said L/C. Later on the submitted commercial invoice, Bill of Lading, packing list and other documents were found false and fraudulent. On 10 May 2003 the COMPANY 1 filed a title suit (Title Suit No. 109/2003). The learned Joint District Judge, 1st Court, Dhaka issued an order by which BANK 1 is restrained by an ad interim injunction from making any payment on the basis of the documents in question under the said L/C to the defendant-opposite party COMPANY 2 and BANK 2, Faisalabad, Pakistan defendant Nos. 2 and 5 respectively. At present, 3 (three) years have passed since the ad interim injunction order was issued.
In these circumstances, you have sought our legal opinion as to whether BANK 1 can remove the bills from their record and close the file accordingly.
An ad interim injunction is an interim relief. It is not a final disposal of the suit. Such injunctions continue until a time specified by the Court or until further order of the Court. The object of such injunction is to restrain the party concerned from wasting, damaging, alienation, sale, removal or disposition of the property (or dispossession of the plaintiff, otherwise causing injury to the plaintiff in relation any property in dispute in the suits as the Court thinks fit, until the disposal of the suit or until further order).
The Joint District Judge Court-1, Dhaka issued an ad-interim injunction restraining BANK 1 from making payment in favour of COMPANY 2 and BANK 2, Faisalabad, Pakistan. The said injunction does not mean that claims of COMPANY 1 are disposed of finally. The disputes between the parties will be disposed of through disposal of the Title Suit, unless the said order is challenged in the higher forum. Until and unless the disputes between the parties are disposed of finally by the Court, there is no scope for BANK 1 to remove the bills from their record and close the file.
If you have further query please do not hesitate to mention us.
For: “The Lawyers & Jurists”