BHASIN ASSOCIATES LIMITED Vs. PUNJAB AND SIND BANK

JUDGEMENT

(1.) This appeal arises out of an order passed by the learned Trial Judge on October 13, 1993 refusing to restrain enforcement of bank guarantee. The appellant has assailed the said order of the learned trial Judge by contending that the learned trial Judge ought to have passed an order of injunction restraining the respondents from in any way invoking and encashing in any manner the bank guarantees Nos. 24/90279/91, 24/90280/91 dated February 6, 1991, March 27, 1991 and February 6, 1991, respectively.

(2.) In this appeal, the learned counsel for the appellant has taken mainly the ground that the letter of invocation dated October 4, 1993 by the respondent No. 1 was made after expiry of the period of bank guarantees and as such this letter of invocation was not operative and was barred by limitation or had become a stale invocation.

(3.) It appears to us that the said letter dated October 4, 1993 is not the letter of invocation by the beneficiary being the respondent No. 2. The letter was addressed by the bank, being the respondent No. 1 to the appellant intimating that the Bank had been called upon by the beneficiary of the concerned bank guarantee to make payment of the amount covered by the said bank guarantee to the beneficiary. By this letter the appellant was also advised to make payment due under the said bank guarantee, on failure of which the Bank would be left with no other option but to take appropriate steps for recovery of the amount from the appellant.