UOI Vs. BASIC TELE SERVICES LTD

JUDGEMENT

(1.) ALL the various reasons given by the learned Single Judge to decree the suit filed by the respondent, one reason is that the bank guarantee was not invoked in terms of the guarantee and thus the demand was not to be satisfied.

(2.) SUFFICE would it be to state that with respect to a claim under a bank guarantee, it is the mantra recited which decides the fate of the claim. He who recites the correct mantra finds the door of the guarantee opened on its own force without any other intervening fact. If the mantra is not recited properly the door would not open.

(3.) THE letter invoking the bank guarantee reads as under:-