INDOGREEN INTERNATIONAL Vs. DDA

JUDGEMENT

(1.) Allowed subject to just exceptions.

(2.) Learned counsel for the appellant challenges the order dated 22.10.2013 passed by the learned arbitrator solely on the ground that the invocation of the bank guarantee in issue, which is dated 13.05.2008, is not in terms of the bank guarantee. Learned counsel for the appellant says that a bare perusal of the bank guarantee in issue would show that it is valid uptill 04.01.2010, and therefore, the invocation made by the respondent vide letter dated 08.07.2010, is clearly beyond the period of validity.

(3.) In my opinion, this submission is clearly untenable. A perusal of the bank guarantee would show that while the validity of the bank guarantee in issue is uptill 04.01.2010. The beneficiary is entitled to lodge a claim upto 04.01.2012. The lodgement is within the period prescribed in the bank guarantee. In my opinion, all that the bank guarantee envisages is that the cause of action for invocation, should fall prior to 04.01.2010. The learned arbitrator in the impugned order has, broadly, considered this aspect of the matter and given his views. I find no error apparent of law and/or of fact, in the reasoning supplied by the learned Arbitrator.