DCC 31/2007/1

This case involved whether there was a bank liability when a letter of credit was opened for the sale of goods and it was claimed the value of the goods actually delivered was substantially less that the credit and contract, and this was as a result of a fraud.

Background

A first Defendant requested the Plaintiff/Bank to issue a letter of credit in profit of the second Defendant based on documents they submitted to the bank.

The goods arrived at Tehran airport and it appeared that the value indicated on the invoices issued by the second Defendant was much higher than the value of the imported goods.

The experts declared that this difference constituted a fraud and that the second Defendant had received an amount that was higher than the real price.

Proceedings

Claim No 433 of 2005 before the Commercial Court of first instance of Dubai requesting the Defendants to jointly pay a sum of money with interest.

The Court of first instance of Dubai, required the firsts Defendant to pay the sum in addition to 5% interests

Appeal No 433 of 2005 confirmed the judgment and raised the interest to 9%.