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
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
Related Questions & Answers
-
What is the meaning of diwala is it applicable on credit cards Asked 5/14/16, 9:22 pm in India Credit, Debt and Collections Law
-
How to withdraw guarantee given for housing loan for future installment Asked 5/12/16, 2:36 am in India Credit, Debt and Collections Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
