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IN THE HIGH COURT OF KERALA AT ERNAKULAM
Harisankar V. Menon,J
Flemingo (DFS) Private Limited – Appellant
Versus
Airports Authority Of India – Respondent
JUDGMENT
HARISANKAR V. MENON, J.
These two writ petitions are filed by the same petitioner, a Company, stated to have been engaged in the operation of duty- free shops at the Trivandrum and Calicut International Airports. The petitioner contends that the duty-free shops at the arrival/departure terminals in the afore airports were conducted by it on the basis of the license agreements executed with the respondent herein till 31.8.2017. It states that two bank guarantees for Rs.1,29,60,406/- and Rs.2,66,93,694/- were executed with reference to the license agreements in favour of the respondent authority herein. The petitioner states that there were some disputes with the respondent authority as regards the license fee payable and pursuant to the orders of this Court, a sole Arbitrator was appointed. The petitioner further contends that insofar as the arbitration proceedings were not completed within the prescribed time limit, it sought for substitution of the sole Arbitrator and extension of time for completion of the arbitration. Pursuant to Ext.P3 order dated 28.06.2022, this Court refused to consider the request for the substitution of the Arbitrator and the extension of time was a
The invocation of bank guarantees was found unjustifiable as it violated principles of fairness under Article 14, despite the stay period expiry, highlighting the need for due diligence from state au....
The main legal point established in the judgment is that a bank guarantee cannot be invoked in the absence of default on the part of the respondent company, and the interim relief is not maintainable....
The independence of bank guarantees, the discretion of bank managers in invoking them, and the jurisdiction of the court to implement its own orders and the remedies available to the petitioners.
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.
fraud or misrepresentation against the 2nd respondent, the question of interfering in the present Writ Petition directing the respondents not to invoke the bank guarantees provided by the petitioner ....
The bank guarantee must be honored in accordance with its terms, except in cases of clear fraud or special equities.
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.
Bank guarantees are independent contracts and can only be restrained from invocation in cases of fraud or special equities, which were not established in this case.
Courts should not interfere with the invocation or payment under an unconditional bank guarantee unless there is egregious fraud or special equity.
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