JUDGEMENT
Sen. J. -
(1.)This appeal by special leave is from an order of the Bombay High Court dated August 24, 1979, granting a temporary injunction restraining the appellant, the United Commercial Bank. By this order the appellant has been restrained from making a recall of a sum of Rs. 85,84,456/- paid by it under reserve against the relative bills of exchange drawn against the letter of credit issued by it, from the respondent No. 1, the Bank of India and in terms of the letter of guarantee or indemnity executed by that Bank, in a suit based an a banker's letter of credit.
(2.)The facts are somewhat complicated, but it is necessary to disentangle the facts to bring out the point of law involved.
(3.)The respondent No. 2. Messrs Godrej Soaps Limited hereinafter referred to as 'the plaintiffs" by a contract dated February 2, 1978, agreed to supply to the respondent No. 3, the Bihar State Food and Civil Supplies Corporation Limited, hereinafter referred to as 'the Bihar Corporation' one thousand metric tonnes of 'Sizola Brand Pure Mustard Oil' the total value of which was approximately Rs. 86 lacs, packed in brand new leakproof 62,040 tins of net 16 kg. each at the rate of Rs. 137/- per tin. The contract provided inter alia that the Bihar Corporation were to open a letter of credit with the appellant, the United Commercial Bank, for the said amount, which the Bihar Corporation duly did.