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N. V. ANJARIA, SANDEEP N. BHATT
Vijai Electricals Limited – Appellant
Versus
Transformers and Rectifiers India Ltd. – Respondent
JUDGMENT :
N.V. Anjaria, J.
This appeal is preferred under Section 37 of the Arbitration and Conciliation Act, 1996 against order dated 17.2.2021 passed by Commercial Court, City Civil Court, Ahmedabad, dismissing Application Exhibit 23 filed by the appellant herein. It was an application under Section 8 of the Arbitration and Conciliation Act praying to dismiss the suit and refer the parties to the arbitration in view of the Arbitration Clause in the contract.
1.1 It was stated by learned advocate for respective parties that pleadings were complete and no further pleadings were to be added or to be supplemented. They stated that they argued the appeal finally. Accordingly, the appeal was taken up for final consideration.
1.2 The parties submitted the compilation of copies of pleadings and documents which were on record of the Commercial Court. The parties were ad idem in respect of contents of same. They were accordingly permitted to rely on the same in course of hearing of the appeal.
2. Respondent M/S. Transformers and Rectifiers India Limited- original plaintiff, institute Comme
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....
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 invocation of bank guarantees must establish loss due to breach; disputes must be arbitrated as per contract.
The court confirmed that a valid arbitration agreement exists under the Arbitration and Conciliation Act, 1996, and granted an injunction against bank guarantee invocation due to potential irreparabl....
A confirmed Bank Guarantee/irrevocable Letter of Credit cannot be interfered with unless there is established fraud or irretrievable injustice involved in case.
Bank guarantees can be invoked regardless of disputes, unless fraud or irretrievable harm is clearly established.
Unconditional bank guarantees may only be reviewed for egregious fraud or irretrievable injustice; disputes over contract performance must be resolved through arbitration.
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