Law: Contract, Act, 1872

Section: 176

Law: Negotiable Instruments Act (XXVI of 1881)

Section: 30

(a) Banker and Customer Banker's commercial credit-Plaintiff Bank engaged by foreign Bank merely "to advise" the opening of credit of a beneficiary Letter of credit addressed to beneficiary but foreign Bank mailing it to plaintiff Bank with a request "to please forward the original to beneficiary"-Plaintiff Bank whilst forwarding the message making it clear to beneficiary that it was passing the message "on behalf of the opening Bank (foreign Bank) without any engagement or responsibility on our part"-Plaintiff Bank, held, had acted merely as a messenger Letter of credit gave no authority to Plaintiff Bank to "confirm" credit or to negotiate drafts drawn by beneficiary--Plaintiff Rank, nevertheless negotiating documents under credit and making payment. to beneficiary- -Plaintiff Bank, held, acted on its own as principal-Foreign Bank failing to retire shipping docu ments and making payment on presentation of Bill of exchange plaintiff Bank, herd, would have right of recourse. against beneficiary plaintiff Bank, however, neglecting to present foreign Bank, full set of hills of lading-Plaintiff Bank by its default, held, had lost its right of recourse under arrangement entered into with beneficiary. Law of Bankers' Commercial Credits by H. C. Gutteridge and Maurice Megrah, 4th Edn., p. 73 ref. (b) Contract Act (IX of 1872)  S. 176-Pawnee's right where pawnor makes default-Pledgee unable to realise his security by sale of pledged goods same having become worthless-Pledgee can recover debt. (c) Negotiable Instruments Act (XXVI of 1881) S. 30---Liability of drawer--Words "due presentment" in S. 30- Bill of exchange duly presented but dishonoured-Fact that shipping documents were not presented along with, Bill did not make presentment not "due presentment not due presentment Bill of exchange .gives an independent cause of action to holder thereof-Any collateral agreement cannot be set up as a defence to claim under S. 30. The "due presentment" referred to lit section 30 of the Negotiable Instruments Act, 1881 relates to the due presentation of the bill of exchange and not of the shipping…