Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Customs Act 1962 |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Customs Act, 1962:S. 25(1)-Exemption Notification No. 111195-CUS. dated 5.6.1995-Export Promotion Capital Goods Scheme-To fulfil export obligation Companyobtained various import licences in respect of which bank guarantees famishedfrom various banks-In respect of CIF value 'of rupees one hundred crore andmore period to fa/fl/ export obligation was extended--But later extensionperiod revoked and bank guarantees invoked-Company contending that sincethe period for compliance of export obligation was extended, the bankguarantees cannot be permitted to be encashed as ample time is available tothe company to discharge the export obligation-Held, order extending exportobligation has been revoked-Even otherwise, plant of the company has beenclosed down-Public notices have been issued for auctioning the plant by theCompany itself-When there is no chance of the Company fulfilling its exportobligation, action of the respondent invoking the bank guarantees cannot besaid to be premature and unjustified, muchless arbitrary and illegal so as towarrant any interference by the Court-Export-import-Bank guarantee.Banks/Banking:Bank guarantee-Invoking of-Resistance by Bank-Company obtainingimport licences to fa/fl/ export obligation under Export Promotion Capital Goods& scheme-Bank guarantees famished-in respect of CIF value of rupees one hundredcrore and more, period to fulfil export obligation extended but laterextension period revoked and bank guarantees invoked-Bank resisting onthe ground that bank guarantees furnished by it were conditional and therebeing enough time to fa/fl/ export obligation bank guarantees cannot beencashed-Held, for encashment of bank guarantee bank cannot have .any valid resistance except, of course, in a case of fraud-The bankguarantee furnished by the bank is an unconditional and absolute bankguarantee-The clause in the bank guarantee specifically provides thatthe demand made by the President.of India shall be conclusive as regards theamount due and payable under the bank guarantee and the liability under theguarantee is absolute and unequivocal-Bank has no case to resist encashmentof bank guarantee. |
Judge | N/A |
Neutral Citation | 2003 INSC 114 |
Petitioner | Daewoo Motors India Ltd. |
Respondent | Union Of India And Ors. |
SCR | [2003] 2 S.C.R. 276 |
Judgement Date | 2003-02-20 |
Case Number | 1502-1503 |
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