ZILINGO PTE. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) This hearing has been held through video conferencing.

(2.) The brief background of this matter is that a contract was entered into between the High Commission of India, Singapore and the Petitioner, through the channelising company HLL Lifecare Ltd., Thiruvananthapuram, for the procurement and supply of masks. As per the contract, the Petitioner was to supply 10 million KN-95 Respiratory Masks, for a value of USD 22.5 million. 30 percent of the total value of the invoice was to be secured through a bank guarantee by the Petitioner, which is the subject matter of this present writ petition.

(3.) The present writ petition was listed in the typed supplementary list on special marking on 14th October, 2020, and was taken at 4:00 P.M in view of the urgency expressed that a bank guarantee, for a sum of USD 6.75 million, is sought to be encashed by the Respondent No. 1/Union of India, through the Ministry of External Affairs. The encashment demand has been raised by the High Commission of India in Singapore, for invoking the said bank guarantee dated 9th April 2020, vide its letter dated 8th October, 2020. The issuing bank, of the bank guarantee, Respondent No. 3/DBS Bank Singapore, has sent an e-mail to the Petitioner, stating that the amount is likely to be credited to the beneficiary's account by 10:00 A.M on 15th October, 2020.