Q&A Uncategorized COURT ORDER REVISITED By Mr Old Man Posted on May 9, 2016 1 min read 0 0 2,317 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION With reference to the refusal I have a question. X Bank received documents from Y Bank under LC issued by them. The documents are complied as per the terms of the Letter of credit . Before the due date the applicant brings a court order instructing the X Bank not to pay under the LC . Based on the same X Bank sends a notice to Y Bank in this regards . My question is: Is X Bank right in refusing to pay the bill? Under which clause X Bank has got the right not to pay the bill? TV RAJESH ———- ANSWER Hi, Court injunction or court order is a matter of local law not covered in the UCP. Local banks must comply with such a court order. Kind regards, Mr. Old Man