People’s Bank vs Good Fellows (Pvt) Ltd. – SC CHC. NO. 41/2004-2013

In the case between People’s Bank (Appellant) and Good Fellows (Pvt) Ltd. (Respondent), the court addressed the issue of whether the Appellant Bank was entitled to recover sums under disputed letters of credit and associated guarantees, and specifically whether the right of recourse lay against the issuing bank, the seller, or both. It was held that the Appellant Bank may proceed to recover amounts from either the issuing bank or the Respondent (seller) based on the guarantees and contractual documents executed, but cannot claim from both entities for the same obligation. This determination reaffirmed the principle that a party seeking recourse for payment under documentary credits and associated guarantees must elect its remedy and cannot obtain double recovery. Reliance was placed on the