Guarantee and not an unconditional
Bank Guarantee. Merely because in the Bank Guarantee Ex. D2
the word "unconditional or without protest or cavil ... unconditional. The
terms of Bank Guarantee have to be seen to conclude whether the
Bank Guarantee is conditional and unconditional and mere reading
fraud
in connection with such a bank guarantee would vitiate the very
foundation of such a bank guarantee. Hence if there is such a fraud ... that bank guarantee is an independent
contract between bank and the beneficiary thereof. The bank is
always obliged to honour its guarantee as long
petitioner might
not extend the bank guarantee, the 1st respondent was constrained to
invoke the bank guarantee dated 29.05.2018 as per the terms ... recover the
said amount by invoking the bank guarantee. The petitioner executed a
price reduction bank guarantee dated 29.05.2018 in terms of clause
guarantee. The documents executed by a bank are classified as letters of credit and bank guarantee. Under category bank guarantee we include bank guarantee bonds ... accept the contentions raised by the respondent-Bank that the said Bank Guarantee was not absolute and unconditional, but it was a conditional
bank guarantee even if dispute between the
beneficiary and the person at whose instance the bank
guarantee was given by the Bank, had arisen ... fraud in connection with such a bank guarantee
would vitiate the very foundation of such a bank
guarantee. Hence if there is such a fraud
between the party at whose instance the bank guarantee is given and
the beneficiary. Whether the bank guarantee is towards security deposit or mobilization
advance ... bank guarantee. In relation to a
bank guarantee, it is well settled position that when in the course of commercial dealings an
unconditional bank guarantee
alternative, that the performance guarantee is a bank guarantee,
but it is not unconditional and unequivocal. Hence, when this
performance guarantee is clearly referable ... bank guarantee for the
retention money within ten or fifteen days thereafter. The bank
guarantee/indemnity was thereafter furnished by the State Bank
of India
never confirmed the acceptance of the bank guarantee and hence, the bank guarantee had become non existent guarantee and based on the request made ... handover the original bank guarantee to the bank with a request to cancel the same. Since the bank guarantee is being unconditional
Bank of India." "2.BANK Of India, Nehru Place Bank Guarantee NO. NP/G/16/137. Bank Guarantee For Advance Mobilization Loan (Names ... deposit with M/s National Buildings Construction Corporation Ltd., a bank guarantee to guarantee his proper and faithful performance under the said Clause
bank guarantee can be injuncted only under two exceptional circumstances-
1) where there is a fraud in connection with the bank guarantee which would vitiate ... urged that the bank guarantee was an entirely separate contract, independent of the underlying contract. The bank guarantee was unconditional and, therefore, neither its invocation
