UNITED CONSTRUCTIONS Vs. UNION OF INDIA

JUDGEMENT

(1.) CM APPL. 26374-26375/2020

(2.) Learned counsel for appellant submitted that the learned single Judge had failed to appreciate that the Bank Guarantees in question were conditional guarantees and not unconditional guarantees.

(3.) He contended that the bank guarantees had been encashed by the respondent vide invocation letter dated 09th September, 2020 without adhering to the terms of the Bank Guarantees. Consequently, according to him, the bank guarantees had been illegally encashed. In support of his contention, he relied upon the judgment of the Supreme Court in Hindustan Construction Company Ltd. Vs. State of Bihar & Ors., 1999 8 SCC 436 and the judgment of the Division Bench of this Court in Indu Projects Ltd. Vs. Union of India, 2013 204 DLT 600 (DB). The relevant portion of the Division Bench's judgment in Indu Projects Ltd. (supra) relied upon by learned counsel for the appellant is reproduced hereinbelow:-