Oil & Natural Gas Corporation Ltd vs State Bank Of India, Overseas Branch, ... on 21 July, 2000
9. Shri Sorabji on the other hand submitted that whereas the respondent was under a duty to keep the bank guarantees alive, in view of Clause 6 of the bank guarantees, there was no restriction on petitioner not to encash them. Shri Sorabji submitted that Petitioner's demand is only for a part of duty which was guaranteed through the bank guarantees which were sought to be encashed at this point of time. He submitted that the petitioner had waited till the decision of the Commissioner of Customs and was not inclined to wait any further. With respect to the alleged distinction between bank guarantees for commercial requirements and statutory requisitions, he relied upon the judgment of the Apex Court in the case of Oil and Natural Cas Corporation Ltd. v. State Bank of India wherein in para 7 it is observed by the Apex Court as under: