COMMERCIAL BANK OF CEYLON PLC VS. ACE CONTAINERS (PVT) LTD

COMMERCIAL BANK OF CEYLON PLC
VS.
ACE CONTAINERS (PVT) LTD

SUPREME COURT
CHANDRA EKANAYAKE, J
SISIRA DE ABREW, J
UPALY ABEYRATHNE. J
SC APPEAL 142/2014
SCHCLA NO. 41/2014
HC (CIVIL) NO. 329/2013 MR
OCTOBER 23, 2014
DECEMBER 4, 2014
JANUARY 20, 2015

Civil Procedure Code Section 18 - Addition of a necessary party? Performance guarantee/ performance bond - Legal implications? Difference between a guarantee and a demand guarantee? Uniform Rules for Demand Guarantees by the ICC - Wider Construction.

The Plaintiff entered into a Contract with L company for the surfacing of Respondent's container yard, by the contract the Respondent agreed to pay

an advance payment equivalent to 30% of the estimated sum to be paid to L Company on submission of a Bank guarantee, L company furnished an advance payment guarantee from the Appellant Bank. The Responded preferred a claim for the full value of the Bank guarantee (Rs. 22,080,000.00) to the Appellant Bank on the basis that the L Company has failed to return the advance paid them in full Upon the claim the Appellant forwarded a pay order for a sum of Rs. 1,371,655.19 on the b

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