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Magellan Vs CA
Magellan Vs CA
The certification of F.E. Zuellig, Inc. can qualify the bill of lading,
as originally issued, into an on board bill of lading as required by
the terms of the letter of credit issued in favor of petitioner. The
certification was issued only on July 19, 1980, way beyond the
expiry date of June 30, 1980 specified in the letter of credit for
the presentation of an on board bill of lading. Thus, even
assuming that by a liberal treatment of the certification it could
have the effect of converting the received for shipment bill of
lading into an on board of bill of lading, as petitioner would
have us believe, such an effect may be achieved only as of the
date of its issuance, that is, on July 19, 1980 and onwards.
The fact remains, though, that on the crucial date of June 30,
1980 no on board bill of lading was presented by petitioner in
compliance with the terms of the letter of credit and this
default consequently negates its entitlement to the proceeds
thereof. Said certification, if allowed to operate retroactively,
would render illusory the guaranty afforded by an on board bill
of lading, that is, reasonable certainty of shipping the loaded
cargo aboard the vessel specified, not to mention that it would
indubitably be stretching the concept of substantial compliance
too far.