STATE BANK OF INDIA vs MANGANESE ORE(INDIA) LTD.

The Supreme Court addressed the liability of the appellant under letters of credit in a dispute involving Manganese Ore (India) Ltd. and M/s. Emmenor Export Traders. The Court held that the appellant was liable to honor the letters of credit as the quality of goods supplied did not conform to the contractual specifications, specifically regarding manganese and phosphorus content. The findings of both the trial court and the High Court were upheld, confirming the appellant's obligation to pay the decreed amount of Rs. 1,66,191.10.