I.T.C. Limited vs The Debts Recovery Appellate Tribunal & ... on 19 December, 1997
28. Mr. S.B. Vakil, learned Senior Advocate for the respondent has cited an authority of ITC Limited v. Debt Recovery Appellate Tribunal & Ors., 1998 (2) SCC 70, and argued that Bank cannot refuse payment except in case of a clear fraud to the knowledge of the Bank or irretrievable injury and while making payment. Bank is not concerned with the principal contract between seller and buyer. He has argued that here in this case, looking to legal position settled in case cited by him no injunction can be granted against defendant No. 1 from encashing Bank guarantee given by defendant No. 2. He has argued that it is not the case of the defendant No. 2 that plaintiff committed any fraud with Bank when plaintiff obtained a Bank guarantee from defendant No. 2 in favour of defendant No. 1.