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SUBHASH CHANDRA, J. RAJENDRA
State of Rajasthan through the Project Director – Appellant
Versus
Chairman-cum-Managing Director, ICICI Bank Ltd. – Respondent
JUDGMENT
AVM J. Rajendra, AVSM VSM (Retd.), Member—The present Consumer Complaint has been filed under Section 21(a)(i)of the Consumer Protection Act, 1986 (for short “the Act’) against the Opposite Party seeking to direct the OPs:—
A. Pass an order directing Respondent No.1 and 2 to encash the Bank Guarantee No.0008BG00139110 amounting to Rs.99,59,100 and Bank Guarantee No.0008BG00071812 amounting to Rs.25,81,581; and/or.;
B. Grant interest at the rate of 24% from the date of invocation of the bank guarantees; and/or;
C. Award compensation to the Petitioner for harassment and mental agony cause by unlawful actions of the Respondent No.1 and 2; and/or;
D. Direct Respondent No.4 to take stern action against Respondent No.1 and 2; and/or;
E. Any other orders, which this Hon’ble Tribunal may deem fit in the facts and circumstances of the case;
2. Brief facts of the case, as per the Complainant, is that in 2011, the Government of Rajasthan, through the Petitioner (RUIDP), floated a tender for various sewage infrastructure works at Rajsamand under contract package RUSDIP/TR-02/RSM/WW/02 LOT-1 & 2. On 30.11.2009, the Petitioner awarded the project to OP-3, the lowest tenderer, and
A person availing services for commercial profit-making purposes is excluded from definition of Consumer.
The Court held that the invocation of the bank guarantees by HPL was in accordance with the terms of the bank guarantees and that there was no case for interdicting invocation of the bank guarantees.....
A Bank Guarantee cannot be invoked after its expiration, as the obligation of the Bank to pay is strictly defined by the guarantee's terms.
Bank guarantees can be invoked regardless of disputes, unless fraud or irretrievable harm is clearly established.
Courts should not interfere with the invocation or payment under an unconditional bank guarantee unless there is egregious fraud or special equity.
Bank guarantees are independent and unconditional contracts, and courts should refrain from interfering with their invocation unless exceptional circumstances such as fraud or irretrievable injury ar....
A bank guarantee is an independent contract, and its invocation must comply with its terms; disputes regarding underlying agreements should be resolved in civil court.
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