Master Feeds Limited vs People’s Bank – SC CHC NO. 11/2002-2013

In the case between People’s Bank and Master Feeds Limited, the court addressed whether People’s Bank was entitled to recover sums under three Letters of Credit from Master Feeds Limited, despite contentions concerning non-payment to beneficiaries, alleged inflation of claims, and the justification of a default interest rate of 34%. It was held that the disbursements were validly made in accordance with documented agreements, that claims were neither inflated nor prescribed, and that the levied interest rate conformed to standard banking practices. The principle reaffirmed is that a bank, upon establishing documentary compliance and adherence to contractual and statutory obligations, is entitled to recover sums advanced under Letters of Credit. Reliance was placed on the evidence submitted