RITES LIMITED Vs. BANK OF INDIA

JUDGEMENT

(1.) IN this writ petition, the petitioner has prayed for a direction on the respondent Nos. 1 to 3 to forthwith encash/release the total amount of Rs. 2 crores payable against five Bank Guarantees all dated 28.6.2005 in favour of the petitioner, either by remitting the said amount in the petitioner's Bank Account No. 106010200007160 of UTI Bank, Main Road, Ranchi or by issuing an account payee cheque in favour of the petitioner for the said sum, for which the petitioner requested the respondent Nos. 1 to 3 by various letters of different dates, but with no consequence.

(2.) IT has been stated that the petitioner is a Government Company, under the Ministry of Railway, Government of India.

(3.) A counter -affidavit has been filed on behalf of the respondent -Bank stating, inter alia, that the Bank Guarantees were issued by the Bank but the photo copies of five Bank Guarantees, which were produced and were sought to be encashed, appeared to be forged and fabricated. The respondent -Bank, therefore, insisted for production of the original Bank Guarantees. The Bank is always ready to encash the Bank Guarantees, if the originals of the same are produced before the Bank. It has been stated that the respondent -Bank had given a letter to the petitioner clearly stating that the Bank assumes no liability against fake and forged Bank Guarantees. The respondents are, thus, not bound to encash the Bank Guarantees on the basis of any forged document and unless the original documents are produced before the Bank.