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Documents citing Hindustan Construction Co. Ltd vs State Of Bihar And Ors on 8 October, 1999

V.D.Swami And Company Pvt.Ltd vs M/S. Lodge Cottrell India Pvt. Ltd on 3 December, 2013

28. The learned counsel in support of his submission relied upon the decision of this Court in Hindustan Construction Co. Ltd., v. State of Bihar ((1999) 8 SCC 436. This Court in Hindustan Construction Co. having referred to the terms of clause (9) of principal contract between the parties therein came to the conclusion that the bank guarantee specifically refers to the original contract and postulates that if the obligations expressed in the contract, are not fulfilled by HCCL, the right to claim recovery of the whole or part of the 'advance mobilisation' then alone the bank was liable to pay the amount due under the guarantee to the Executive Engineer. The Court found that the bank guarantee specifically refers to clause (9) of the principal agreement and it is under those circumstances it came to the conclusion that the amount covered by the bank guarantee becomes payable and the same could be invoked only in the circumstances referred to in clause (9) of the principal agreement. The bank guarantee executed by the bank in the instant case in favour of the appellant herein does not contain any such clause. Mere fact that the bank guarantee refers to the principal agreement without referring to any specific clause in the preamble of the deed of guarantee does not make the guarantee furnished by the bank to be a conditional one. In the very said judgment this Court observed that : (SCC p.422 pare 9) "9. What is important, therefore, is that the bank guarantee should be in unequivocal terms, unconditional and recite that the amount would be paid without demur or objection and irrespective of any dispute that might have cropped up or might have been pending between the beneficiary under the bank guarantee or the person on whose behalf the guarantee was furnished. The terms of the bank guarantee are, therefore extremely material. Since the bank guarantee represents an independent contract between the bank and the beneficiary, both the parties would be bound by the terms thereof. The invocation, therefore, will have to be in accordance with the terms of the bank guarantee, or else, the invocation itself would be bad".
Madras High Court Cites 15 - Cited by 0 - R Subbiah - Full Document

Mytrah Vayu (Brahamputra) Private ... vs M/S. Solar Energy Corporation Of India ... on 18 March, 2024

(Standard Chartered Bank v. Heavy Engg. Corpn. Ltd., (2020) 13 SCC 574; Hindustan Construction Co. Ltd. v. State of Bihar, (1999) 8 SCC 436). Invocation of a bank guarantee does not depend on termination of the underlying I.A. No. 83/2024 IN A. No. 29/2024 Page 71 of 75 contract. The bank guarantee is a separate contract, and is not qualified by the contract on performance of obligations.
Appellate Tribunal For Electricity Cites 48 - Cited by 0 - R Ranganathan - Full Document

Abir Infrastructure Pvt. Ltd. vs Teestavalley Power Transmission ... on 3 September, 2014

In Mahatma Gandhi Sakkare Karkhane OMP No.557/2014 Page 80 of 98 v. National Heavy Engineering Coop Ltd. (supra) the Supreme Court has laid down this proposition in para 28 by approving the earlier judgment of Hindustan Construction Co. Ltd. v. State of Bihar (supra) and observed that the terms of the bank guarantee are extremely material in order to understand the nature of the bank guarantee. Upon applying the said principle of law to the case in hand, it can be seen that the clauses in the said bank guarantee though provide that the bank is irrevocably guaranteeing to repay the amount without of any cavil or argument but the said guarantee of the bank is further conditioned by the eventuality of the failure of the contractor to fulfil its obligation and in the event of such failure, his refusal to pay all or part of the advance payment. Under these circumstances, the guarantee of the bank to pay by way of plain reading is not completely unconditional in nature which may enable the bank to repay the sum on mere demand but the demand has to be made to the bank and should contain the necessary ingredients including the petitioners failure to fulfil the obligations contained in the contract and its refusal to repay. The said position is possible once the petitioner is alarmed about the repayment of the advanced sum or the part thereof and has been given chance to repay the same and the guarantee of the bank shall commence once the petitioner/contractor refuses to repay. The invocation letters dated 14th May, 2014 do not contain the said ingredients nor the respondent's counsel in their arguments oral as well in the OMP No.557/2014 Page 81 of 98 writing suggest the said position. On the contrary, the respondent continued to argue that the said bank guarantees are unconditional in nature and the wordings are to be understood in context. The said submissions are rejected as meritless in view of my reasons stated in the present paragraph
Delhi High Court Cites 22 - Cited by 9 - M Singh - Full Document

Chennai Metro Rail Limited vs M/S. Transtonnelstroy – Afcons (Jv) on 1 November, 2021

In Standard Chartered Bank Ltd. Vs. Heavy Engineering Corp. reported in (2019) SCC Online SC 1638, the Hon'ble Supreme has also followed the decision in Hindustan Construction Co Ltd. Vs. State of Bihar reported in (1999) 8 SCC 436 case, referred to supra and held that the invocation of the bank guarantee will have to be in accordance with the terms of the Bank Guarantee.
Madras High Court Cites 14 - Cited by 0 - A Quddhose - Full Document

Bhadreshwar Vidyut Private Limited vs Godrej Industries Limited on 23 September, 2022

6.3.1 In Hindustan Construction Company (supra) case the terms of the bank guarantee suggested that it was a guarantee against the mobilization advanced and could not be said to be unconditional. In the facts of the case the injunction against encashment was held to be justified. The court however in terms observed, as in the instant case also, that when the bank guarantee recites that the amount would be paid 'without demur' and irrespective of any dispute that might have cropped up, or might have been subsisting between the beneficiary on one hand and the person furnishing the bank guarantee, both the parties would bound by in terms of bank guarantee since it is an independent contract.
Gujarat High Court Cites 28 - Cited by 0 - N V Anjaria - Full Document
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