MIDDLE EAST BANK Vs. PRARTHANA INTERNATIONAL

JUDGEMENT

(1.) THIS appeal arises out of an order dated 25th June, 1998 passed by a learned Single Judge by which a notice of motion seeking an order of injunction restraining the 4th respondent, the State Bank of India, from making payment of the proceeds of an unconditional bank guarantee to the appellant has been allowed.

(2.) A contract was entered into between the 1st respondent herein and the

(3.) THE guarantee was to come into force immediately on payment of USD 130,500/- being made by the 3rd respondent and was to remain in force until 31st May, 1997. The guarantee stipulated that a claim made by the appellant would be honoured by the issuing bank on receipt of "written demand" despite any protest or contestation by the 3rd respondent.