CASE NO.:

Appeal (civil) 5121 of 2007 PETITIONER:

Vinitec Electronics Private limited RESPONDENT:

HCL Infosystems Limited DATE OF JUDGMENT: 02/11/2007 BENCH:

ALTAMAS KABIR & B.SUDERSHAN REDDY JUDGMENT:

J U D G M E N T CIVIL APPEAL NO. 5121 OF 2007 [ARISING OUT OF SPECIAL LEAVE PETITION ( c ) NO.16098/2006]

B.Sudershan Reddy, J.

Leave granted.

2. The dispute between the parties relates to invocation of the bank guarantee furnished by the appellant to the respondent.

3. The appellant M/s. Vinitec Electronics Private Limited entered into agreement dated 10th May, 2000 with the respondent HCL Infosystem Limited under which the respondent agreed to buy UPS systems from the appellant for a consideration value of Rs.1,68,12,400/-. The method of payment and terms thereof are provided for in clause 15(a)

and (d) in the said agreement.

\023Clause 15:

The payment terms will be :

(a) 30% Advance against a Bank guarantee from a Scheduled Bank of equivalent value.

The BG shall be valid till the date of final delivery at the Company location(s).

(b) . . . . . ( c ) . . . . .

(d) 10% after one year from the date of receipt of material at the customer site(s).\024

4. The case of the appellant was that it had suppli