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MANOJ KUMAR OHRI
Mantena Vsishta Bridge Jv – Appellant
Versus
National Highways And Infrastructure Development Corporation Ltd. – Respondent
JUDGMENT
Manoj Kumar Ohri, J. (Oral)--The matter is received by way of `Supplementary Cause List' on account of urgent mentioning.
2. The instant petition has been filed by the appellants under Section 9 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as the `A&C Act') thereby seeking ex-parte ad interim injunction restraining respondent No.1 (hereinafter referred to as `NHIDC') from invoking and encashing the Performance Security Bank Guarantee No. 0910318BG0000055 dated 12.01.2018 in the sum of Rs.11,49,30,000/- issued by respondent No.2 (hereinafter referred to as `SBI').
3. Briefly, the facts in a nutshell are that on 11.01.2016 NHIDC issued `Notice Inviting Bid' for construction of a major bridge over middle strait creek connecting South Andaman and Baratang Islands in the Union Territory of Andaman & Nicobar Islands on EPC basis. The petitioner No.1, claiming itself to be a joint venture formed by petitioner Nos. 2 and 3 (hereinafter referred to as `Contractor'), submitted its bid and was awarded a letter of Award by NHIDC on 18.12.2017. Subsequently, an Engineering, Procurement and Construction Agreement was entered into between the parties on 02.01.201
Bank guarantees can only be interdicted in exceptional cases of fraud, irretrievable injustice, or special equities, and the existence of any dispute between the parties to the contract is not a grou....
Invocation of an unconditional bank guarantee cannot be restrained unless fraud or irretrievable injustice is established; the nature of bank guarantees is independent and absolute.
The court emphasized the independence and unconditional nature of bank guarantees, while recognizing exceptions such as fraud, irretrievable injustice, or special equities.
Unconditional bank guarantees may only be reviewed for egregious fraud or irretrievable injustice; disputes over contract performance must be resolved through arbitration.
Bank - Bank guarantee cannot invoke - Bank guarantees cannot be interdicted on account of disputes between parties and any allegation that respondent has been reluctant to join proceedings for an ami....
Enforcement of bank guarantees is upheld unless established fraud or irretrievable injustice is demonstrated; the onus lies with the party seeking injunction to provide clear evidence for equitable r....
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