accordance with the terms of the bank guarantees, and, absent
egregious fraud, special equities and irretrievable injustice, Mr. Jain
submits that a Court could ... petitioner has not pleaded, much less
established, the existence of any egregious fraud, irretrievable
injustice or special equities, which are the only circumstances in
which
Fraud, as an exception to the rule of non-interference
with encashment of BGs, is not any fraud but a fraud of an
egregious nature ... notice and a fraud of the beneficiary from which it seeks to
benefit. The fraud must be of an egregious nature as to vitiate
guarantees is no longer res integra and only in case of egregious fraud
and/or irretrievable injury/special equity, injunction may be granted.
Petitioner ... notice and a
fraud of the beneficiary from which it seeks to benefit. The fraud
must be of an egregious nature as to vitiate
singular and well-recognised ground of the invocation being
vitiated by egregious fraud, which, according to him, squarely attracts
the limited exceptions carved ... when there is a clear fraud of which
the bank has notice. The fraud must be of an egregious
nature such as to vitiate
satisfy the requirement in law
constituting any fraud much less the fraud of an egregious
nature as to vitiate the entire transaction. The case, therefore ... Fraud, as an exception to the rule of non-interference with
encashment of BGs, is not any fraud but a fraud of an egregious
nature
Bank Guarantees submitted by the
petitioner, would amount to an egregious fraud.
18. To buttress his submissions, Mr. Nayar placed reliance on the
judgement
which are the only exception to the general rule viz: (a)
egregious fraud which vitiates the entire transaction and of which the bank
has notice ... inter se disputes are irrelevant to the Bank
Guarantee Agreement; (d) egregious fraud must be pleaded; (e) irreparable
injury must be shown. The petitioner
when there is a clear fraud of which the bank has notice. The fraud must be of an egregious nature such as to vitiate ... Fraud, as an exception to the rule of non-interference with encashment of BGs, is not any fraud but a fraud of an egregious nature
crores, which will amount to egregious
fraud and it is their case that in case of encashment of the Bank Guarantee
by the Appellant ... Guarantee being an unconditional one,
unless and until the respondents establish egregious fraud and
irretrievable injustice, an injunction cannot be granted from
invocation/ encashment
petitioner, as being wholly arbitrary, illegal
and an act of egregious fraud. It has sought restrainment upon CCL from adjusting
and / or recovering the outstanding ... company registered under the Companies Act . It is a case of
egregious fraud on the part of the respondent C.C.L to invoke
