BANK MELLI IRAN v. RAW COTTON COMMISSION.

[1953] 1 Lloyd's Rep. 440

QUEEN'S BENCH DIVISION.

Before Mr. Justice Pilcher.

Contract - Bank - Sale by bank as pledgees - Shipments of cotton - Confirmed credit opened by English buyers with foreign bank in favour of foreign sellers - Short shipments of cotton covered by credit - Further shipments in same vessel not covered by credit - Loans made by foreign bank against documents covering further shipments - Further shipments offered by bank to buyers - Dispute as to terms of acceptance by buyers - Over-invoicing of credit cotton, resulting in overpayment by defendants to foreign sellers - Whether buyers entitled to set off proceeds of further shipments against such overpayment.