DCC 215/2000

This case involved the liability of a bank where a letter of credit had been provided but the amount had not been paid after the goods were supplied. A key issue was the obligation when it was claimed suitable documentation had not been provided.

Background

A Respondent Company filed suit No. 102/1999 before the Court of First Instance against the Appellants, requesting judgment to oblige them jointly to pay 83/457382 AED and default interest of 12% from the date of filing the lawsuit until the completion of payment on the basis that, within the month of July 1998, the Second Appellant Institution had agreed with them to supply computer equipment for a university for 444,061 AED, which was to be paid according to a definitive documentary letter of credit. The First Appellant Bank issued the documentary letter of credit No. 030256-003 for the amount in their favour, and the Respondent implemented their obligation but the First Appellant refused to pay the value of the credit unjustly, so it decided to file the current lawsuit.

Proceedings:

Court of First Instance – Decision dated 25/10/1999.