CORPORATION BANK vs NAVIN J. SHAH

The Supreme Court held that the appellants, a bank, failed to comply with the instructions regarding the negotiation of export documents under the Foreign Exchange Management Act, 1999, specifically regarding the requirement to realize export proceeds in U.S. Dollars. The Court established that banks must adhere to the terms agreed upon with their clients and cannot unilaterally change the terms of negotiation without consent. The Court ruled in favor of the respondent, ordering the appellants to pay the balance amount along with interest.