UNITED COMMERCIAL BANK vs BANK OF INDIA AND OTHERS

The Supreme Court addressed the duties of a paying bank under a letter of credit, emphasizing that the bank is not obligated to verify the conformity of goods through physical examination or expert advice. The Court held that a payment made 'under reserve' due to discrepancies in documents does not constitute a breach of duty by the bank. The High Court's injunction restraining the bank from collecting amounts paid under reserve was deemed inappropriate, affirming the bank's right to seek recovery based on discrepancies in the railway receipts and the nature of the goods.