M/S South East Asia Shipping Co. Ltd vs M/S Nav Bharat Enterprises Pvt. Ltd. & ... on 13 March, 1996
In the decision reported as (1996) 3 SCC 443 South East
Asia Shipping Co. Ltd. v. Nav Bharat Enterprises Pvt.
Ltd. noting that the contract between the parties was executed
at Bombay and had to be performed at Bombay, it was held
that merely because the bank guarantee was executed by a bank
at Delhi in terms of the mother contract would not constitute a
cause of action at Delhi to a lay a suit to injunct the bank from
paying under the guarantee and to restrain the beneficiary from
FAO (OS) (COMM) 184 & 185/2017 Page 11 of 13
enforcing the right under the guarantee.