SYNDICATE BANK BRANCH AT HANAMKONDA Vs. EXCISE SUPERINTENDENT EXCISE DEPARTMENT WARANGAL WARANGAL DISTRICT

JUDGEMENT

(1.) The appellant is the plaintiff in OS No. 374 of 1994 on the file of the Court of the District Munsif at Warangal. The respondent herein is the defendant in the said suit. The plaintiff filed the suit seeking to restrain the defendant and his officers and workmen from attaching and ceasing the properties of the plaintiff-bank under A.P. Revenue Recovery Act, 1864 ('R.R. Act' for brevity).

(2.) The averments of the plaint are briefly as follows:

(3.) The plaintiff is a nationalized bank. It furnished bank guarantees to various persons guaranteeing payment towards privilege fee, MGQ, and CST charges payable by them to the Excise Superintendent, Warangal. The above bank guarantees were furnished on 30-9-1988 for a period of 12 months and all the rights of the defendant shall be forfeited unless a demand or claim under the guarantee is made against the plaintiff bank within the said validity period of guarantee i.e., on or before 30-9-1989. The defendant has not invoked the bank guarantee on or before 30-9-1989 and did not demand for payment. He made the demand only on 4-6-1994. Therefore, there is no obligation to the plaintiff to pay the invoked amount after the expiry of the bank guarantee. The bank apprehends that the defendant may invoke the provisions of the Revenue Recovery Act and create trouble to its business. Hence the suit.