Durham Auto Turkey is a public limited company; they manufacture utility vehicle, in collaboration

with General Motors of USA. The company has established their manufacturing base at Manisa,

Turkey.

The company imports many parts of the car engine in a CKD $($completely knocked down$)$ condition

from General Motors, and approached Turkish Support Bank, Manisa Branch for opening of import

letter of credit as per UCP ICC $600$ for USD $100,000,$ on sight basis, in favour of General Motors.

Turkish Support Bank, Manisa Branch issued its irrevocable negotiable credit through its head office

in Istanbul since Turkish Support Bank co$-$ordinated all its accounting and communication functions

at its head office. The Bank$$s head office transmitted the credit through Swift network as instructed

by its Manisa branch to General Motors, Detroit, through The American Bank.

The American Bank advised the credit to General Motors, Detroit on receipt of the swift

transmission.

Along with other conditions, the credit clearly stated that the negotiating bank was to forward the

documents directly to Turkish Support Bank head office $($HO$)$ at Istanbul.

After export of the consignment, General Motors, Detroit presented the documents under the credit

to The American Bank.

The American Bank, examined the documents presented by General Motors and determined that

they were in compliance with the terms and conditions of the credit. The American bank negotiated

the documents and forwarded the documents, as per the credit terms, to the HO of Turkish Support

Bank in Istanbul and claimed reimbursement from International Bank.

International Bank $($reimbursing bank$)$ honoured the reimbursement claim by crediting the current

account of the American Bank and debiting the account of Turkish Support Bank in Istanbul in its

books.

Turkish Support Bank$$s Head Office, at Istanbul, received the documents and after internal

registration of the documents, forwarded the documents to its Manisa Branch by inter$-$office mail.

On receipt of the documents by the Manisa branch of Turkish Support Bank, they examined the

documents and determined that they were discrepant. They were $60$ units were shipped instead of

$50$ units, and Inspection certificate by Auto Inspection Council, USA is not submitted, as per credit

terms. Turkish Support Bank contacted Durham Auto Turkey for waiver of the discrepancies.