Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Injunction - Of Bank Guarantee - Scope of - Contractual agreement between the appellant (supplier) and the respondent (wholesale dealer) - |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Injunction - Of Bank Guarantee - Scope of -Contractual agreement between the appellant (supplier) andthe respondent (wholesale dealer) - Respondent furnishedunconditional Bank Guarantee in favour of the appellant -Outstanding demand by appellant to the respondent - Onfailure to honour the demand, appellant invoked BankGuarantees - Respondent filed suit seeking permanentinjunction against the appellant and the Bank from payingthe guaranteed amount - Trial Court by interim injunctionrestrained the Banks from making payment to the appellant-The Interim order was approved up to High Court - On appealheld: When in the course of commercial dealingsĀ·unconditional Bank guarantees have been given, thebeneficiary is entitled to realize such guarantee irrespectiveof any pending disputes - Injunction of unconditional BankGuarantees can be granted only when the court is satisfiedabout the commission of a flagrant fraud, at the hands ofone or the other contracting parties, or when the court issatisfied that an irreparable injury or irretrievable injusticewould be caused to the concerned party- In the facts of thepresent case, courts below were not justified in injuncting theinvocationĀ· of the three Bank Guarantees - Therefore, theBank directed to honour the Bank Guarantees - BankGuarantee. |
Judge | Honble Mr. Justice Jagdish Singh Khehar |
Neutral Citation | 2015 INSC 883 |
Petitioner | M/s. Adani Agri Fresh Ltd. |
Respondent | Mahaboob Sharif & Ors. |
SCR | [2015] 15 S.C.R. 1 |
Judgement Date | 2015-12-02 |
Case Number | 14015 |
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