Law:

Section:

Contract-Goods ordered from abroad through indent mer chant-Legal position of indent merchant vis-a-vis indentor and foreign suppliers-Relationship between parties to be determined on terms of contract-Foreign suppliers accepting letters of credit opened in their favour by indentor and shipping goods direct in name of indentor-Relationship between parties, held, ripened into direct contract-Indent merchant in position of commission agent only,   Holmes Wilson & Co. Ltd. v. Bata Kriso De A I R 1927 Cal. 668 ref.   M. v. Krishna Iyer & Sons v. William C. Yille & Co., Ltd. A I R 1927 Mad. 1150 (2) and Fazal Ilahi v. The Imperial Chemical Company, Delhi 67 I C 157 distinguished.   JUDGMENT   WAHIDUDDIN AHMED, J.-In this first appeal the appellants have attacked the judgment of Mr. Ahsanul Haq Qureshi, the then Additional District Judge, Karachi, in Civil Suit No. 283 of 1956 dated the 28th of April 1959 in so far as the claim of the appel lants for the recovery of Rs. 5,469 has been dismissed against the respondents.   The appellants who are merchants of Karachi, under an agreement dated the 20th of June 1950 agreed to purchase from Messrs Home Textiles Company of Karachi or their agents or principals 12500 yards of "Overprints three or four colours, quality 2003, at 19.5 cents per yard F. O. B. Japan Port" plus their commission at 2% on C. I. F. value. The other terms of the contract were that the appellants would open a confirmed irrevocable letter of credit in favour of their suppliers the respon dents, a Japanese firm, by the 21st of June 1950, valid upto the end of August 1950 and expiring on the 1st of September 1950.   The Karachi firm was sued as defendant No. 1 in the original suit before the learned trial Judge, but is not a party in this appeal. The appellant's case, however, is that in pursuance of the above mentioned contract, they opened an irrevocable letter of credit in favour of the respondents through Habib Bank, Limited, and it was duly accepted by the respondents. It is alleged by the appellants that by acceptance of this letter of credit the respon dents became liable for the performance…