TARAPORE & CO., MADRAS vs M/S. V/O TRACTORS EXPORT, MOSCOW AND ANR.

The Supreme Court held that an irrevocable letter of credit operates independently of the underlying contract and should not be interfered with by courts except in exceptional circumstances, as it is crucial for international trade. The Court ruled that the appellant's claim of the respondent's lack of assets in India was not substantiated in the pleadings and did not constitute fraud. The appeal against the High Court's reversal of the temporary injunction was dismissed, affirming the autonomy of the letter of credit under commercial practice.