Law: Contract Act (IX of 1872)

Section: 10 , 176 , 30

JUDGMENT

GHULAM MUHAMMAD KOUREJO.-The facts giving rise to the present appeal briefly stated are, that the appellant No. 1 Taj Seafood Industries (hereinafter referred to as Taj Seafood) is a partnership firm which was carrying on business as exporter of frozen shrimps through its partners, appellants Nos. 2 and 3 had a current account with the United Bank Limited, Karachi, the respondent NQ. 1.. The firm entered into a general agreement dated 22-9-1966 with respondent No. 2 Atlanta Trading Corporation of New York to export frozen shrimps on a consignment basis to be paid for by means of opening Letters of Credit. At the time of the last consignment, as Taj Seafood found itself was in need of funds to finance the export, it obtained from the United Bank .respondent No. 1 an over draft,. called a packing credit against a lien on the Letter of Credit and on the security of shipment to be made under the Letter of Credit. It also executed a blank. promissory note as further collateral security.