Mahatma Gandhi Sahakra Sakkare ... vs National Heavy Engg. Coop. Ltd. And Anr on 11 July, 2007
9. Advancing submissions by way of rejoinder, Mr. Sethi disputes
the contention, of Dr. Singhvi, that egregious fraud is the sole ground
on which the invocation of a bank guarantee can be stayed. Rather,
submits Mr. Sethi, the decisions on which Dr. Singhvi placed reliance,
themselves carve out a second circumstance, justifying such stay,
namely the existence of special equities. Where refusal to grant stay
would result in injustice to the petitioner, Mr. Sethi submits that the
existence of special equities stood established. Mr. Sethi places
reliance on Mahatma Gandhi Sahakara Sakkare Karkhane v.
National Heavy Engineering Coop. Ltd4 and U. P. State Sugar
Corporation v. Sumac International Ltd5.