Stand-
by letters of credit are also used in business circles.
Performance bond and guarantee bond are also devices
increasingly adopted in transactions. The Courts ... performance guarantee for the sum of pound
50,203. Acting on those instructions the defendants
requested a bank in Libya to issue performance bond
contract, respondent-1 was required to
provide performance bond equal to 30 per cent of the total
value of contract price, which ... split up into two
performance bonds partly to be released on completion of the
project, and the balance upon the expiration of the warran
amounts from the various bonds/Bank Guarantees. Under clause 9, the
Contractor was obliged to furnish `advance payment bonds', `performance
bonds', `financial bonds
fixed under
the contract and actual dates of performance with respect to issuing of the
performance bond, warranty bond, notice of readiness, opening ... that there is no fixed order for performance of
respective obligations and that giving of the performance bond and warranty
bond by the respondent
completion of the contract or satisfactory performance thereof, stood extinguished and that the second performance bond bad not matured turn enforcement at the time ... mind. the performance of the Contract, as contemplated by Article 8 , in relation to which performance bonds were to be given, and which
favour
of EGI. The relevant terms of Performance Bank Guarantee read as under:
"Performance Bond to Elektrik Uretim A.S. Genel Mudurlugu
(EUAS) date ... amount of EUR 3,831,589.69
being the value of the performance bond which has to be
submitted by the said contractor in order
point five per cent) of the Contract Sum.
The Performance Guarantee and the Performance Indemnity Bond
are collectively referred to as the "Performance Bond ... said Clause however, makes it clear that the Performance Guarantee and
the Performance Indemnity Bond shall collectively be referred to as "Performance
Bond
total contract price
for performance of the contract (Clause 4 of the Principal
contract). In pursuance thereof a performance bond dated 24th
[13]
February ... that the
Tribunal had considered three bank guarantees.
(a) For performance security of performance bond
contract, 10% of the total price.
(b) Indemnity bank guarantee
After submitting its bid on 16.03.2016, the appellant submitted
their performance bond on 20.06.2016.
5. The Respondent Board issued the 'Grant of Authorization ... commissioning of JMPL;
and were informed that furnishing of a performance bond for Rs. 20 crores
was to guarantee timely commissioning of the project
unsuccessful entity
submitting the bid;
iii) retained till the prescribed performance bond is
furnished at the time of authorization by the successful
bidder.
...
10. Grant ... issued and at the time of authorization replaced by a
"Performance Bond"(performance Bank Guarantee). This, we note, is
meant
