Case Study

[DINN...@gmail.com]

Supplier is in US, And Importer is in INdia, Importer (Applicant)
approach to BOB for opening a l/c for USD 50000,[partial shipment
allowed] in the favor of the said supplier. the supplier negotiated
the document under the l/c of BOB with BTC, USA for usd 30000, and the
same was presented by nominated bank to BOB, which were paid on
complied credit terms.

After some time in [ 2 days prior to expiry date of the l/c ] the
nominated bank sent document of usd 30000 to the issued bank on
approval basis. [ considering the discrepancy of overdrawn bill], the
document forwarded to the issuing bank, which in terms inform the
applicant which advised the BOB to accept the doc, and further advise
to increase the l/c amount to USD 75000 and also to enhance the expiry
date of the l/c. the negotiated bank working accordingly send the
message to the nominated bank.

nominated bank present third set of document worth USD 25000 to the
BOB.

BOB refused the document on the overdrawn bill discrepancy basis.

nominated bank opposed the same.

Please solve out which bank is wrong and why?