Bank Guarantee Rules

Though the legal position is well established that once a bank guarantee has been procured in favour of a beneficiary, its enforcement cannot be sought to be restrained by an injunction at the instance of the party which instructed the issue, except in the case of a fraud or where irretrievable injustice would be done if the bank guarantee is allowed, the pattern of litigation shows unwillingness of those in commerce to absorb the principle.

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