grant of contract for building
the City Centre and payment of mobilisation advance, the
correspondence that passed was between the Government of
India ... first ground was that a clause for the
payment of a mobilisation advance of Rs. fifteen lakhs was
included in the contract awarded
Svenska Handelsbanken vs Indian Charge Chrome (Dayal, J.) on 15 October, 1993
Equivalent citations: 1994
HCCL, and which it did furnish, was
the Guarantee against "Mobilisation Advance" which was to be provided by
the defendants from time ... advance loan, it shall become due and payable
immediately, and no further loan will be made to the Contractor thereafter.
The advance mobilisation loan, shall
from the running bills submitted by the respondent. If the
full mobilisation advance has not been recovered, it would
be to the advantage ... liability of
the Bank remained intact irrespective of the recovery of
mobilisation advance or the non-payment under the running
bills. The failure
Superintending Engineer, Fishing Harbour Projects Circle considered the question of mobilisation advance and decided that a mobilisation advance of Rs. 2 lakhs may be granted ... with excess percentage of 2.90% over the estimate and mobilisation advance was also sanctioned under usual terms and conditions. In the G.O. there
lieu of security deposit and five are for securing mobilisation advance made by the respondent No. 1 to the petitioner.
2. The respondent ... release the guaranteed amount.
5. Similarily the five guarantees against mobilisation advance which were approved by the respondent No. 1, could be enforced only
identical sum on 25th/26th and 27th June 2008 towards mobilisation
advance. It is alleged that both advances were delayed. The terms of
contract contemplated ... petitioners were obliged to
furnish them and hence, they furnished the mobilisation advance, bank
guarantee to respondent No.1 for an aggregate
again subject to extension from time to time, the necessary mobilisation advance promised was not made in time as per the agreement ... execution of the work resulted in breach of the agreement; the mobilisation advance could not be made because the contractor failed to give bank guarantee
Pursuant to this terms of the Contract, a bank guarantee wherein mobilisation advance was quantified to be Rs.l,86,0,00.00 was furnished ... Getsco in account, after making deductions prorata towards recovery of mobilisation advance.
(8) In between, the appellants, in awareness of the liability to furnish performance
second defendant under two bank guarantees, the performance guarantee and the mobilisation advance guarantee, and further restraining second defendant from making any payment ... mobilisation guarantee number z/7/302 dated November 26, 1987. It is an admitted case of the parties that the mobilisation advance was from time
