Commercial Bank of Ceylon Ltd. v. Salahudeen – sllr 1999 volume 3 page 187

In the case between Commercial Bank of Ceylon Ltd. and Salahudeen, the court addressed the issue of whether a bank remains liable to pay under an irrevocable documentary credit after the expiry date specified in the credit instrument. It was held that the expiry date under the Uniform Customs and Practice for Documentary Credits (U.C.P.D.C.), specifically Articles 46 and 48, is determinative, and no obligations subsist once the documentary credit has expired unless explicit revival provisions are met. This decision reaffirmed the principle that strict compliance with expiry and document presentation regulations under the U.C.P.D.C. governs the enforceability of payment obligations, impacting how parties engage with letter of credit transactions under international banking practice.

Jayasi