DENEL PROPRIETARY LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) CM No.3515/2015

(2.) Since the applicant bank had honoured its obligation under the bank guarantee issued by it to the respondent, when the bank guarantee was invoked, it issued a demand draft in the name of the respondent in sum of US $11,97,930. The learned Single Judge did not grant the relief prayed for by the appellant. FAO (OS) No.241/2010 was filed laying a challenge to the order dated March 22, 2010.

(3.) Initially recording a statement made by the learned Additional Solicitor General on behalf of the respondent that the respondent would not present for collection the demand draft issued by the applicant-bank, an order was passed on May 24, 2011 in the appeal directing that after encashing the demand draft issued in its favour by the applicant the respondent would deposit the proceeds thereof with the Registrar General of this Court.