Legal Reference Library

In a significant ruling, the Delhi High Court has held that the invocation of a bank guarantee can be stopped only if it is proved that there was fraud or irretrievable injury or injustice in the course of a commercial dealing. Allowing an appeal against a Single Judge's order, a Division Bench said in a recent judgment that a bank guarantee has to be respected irrespective of the disputes pending between the parties. The existence of a dispute between the parties with regard to an underlying contract cannot be a ground for issuing an injunction to restrain the enforcement of the bank guarantee. The Bench of Justice B.D. Ahmed and Justice Sanjeev Sachdeva said the purpose of giving bank guarantee would be defeated if an injunction was granted. In the case, Zillion Infra Projects Limited had issued a letter of intent to Fab-Tech Works & Constructions Private Limited for construction of an NTPC power project near Nagpur. While Fab-Tech gave a bank guarantee, differences cro...

1) Suryalakshmi Cotton Mills Limited v. Rajvir Industries Limited and others 2) Rallis India Limited v. Poduru Vidya Bhushan and others 3) Pulsive Technologies P. Ltd. vs. State of Gujarat 4) Modi Cements Ltd. vs. Kuchil Kumar Nandi IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION CRIMINAL APPEAL NO. 471 OF 2015 (Arising out of SLP (Crl) No. 5295 OF 2014) HMT Watches Ltd. ... Appellant Versus M.A. Abida & Anr. … Respondents A high court cannot go into the factual aspects of a dispute over stop-payment of cheques and they should be tested during the trial, the Supreme Court stated in the judgment, HMT Watches Ltd vs M A Abida. The latter was a re-distribution stockist of the firm and she issued 57 cheques which bounced. The company filed complaints under the Negotiable Instruments Act. She argued that the cheques were given as security and therefore there was no liability, the main ingredient in Section 138 of the Act. Moreover, the cheques...