Legal Question in Credit and Debt Law in India
If a letter of credit issued by a bank and subsequentlly it is revealed that it is fake L/C. L/C is signed by authorised sognatorry of the bank .on banks leetter head using branch stationerry. whether in such case L/C Opening Bank is liable to pay to the benificiarrys bank , if documents are otherwise in order
Asked on 5/15/16, 8:55 am
2 Answers from Attorneys
Dr Katta Venkata Rama Krishna
Drkattavrk
1) If there is no negligence on the part of opening bank and acted
in good faith, the issuing bank is responsible.
2) Agent is liable for the actions of the Principal.
Answered on 5/15/16, 9:47 am
Fca Prashant Chavan
Expert Edge LLP
16.05.2016
Dear Sir / Madam,
Yes, the L/C opening bank is liable to pay the beneficiary Bank.
Regards,
Answered on 5/15/16, 6:42 pm
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