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2015 (12) TMI 1880 - SC - Indian LawsRestraint on invocation of Bank Guarantee - Execution of bank guarantee was made for securing payment in lieu of the products supplied by the Appellant to Respondent No. 1, M/s. RMSFC - Unconditional Bank Guarantee - Outstanding Certificate seeking payment, on account of despatch of fruit to M/s. RMSFC - balance of convenience - HELD THAT:- The principles laid down by this Court in U.P. Cooperative Federation Ltd. v. Singh Consultants and Engineers (P) Ltd. [1987 (11) TMI 375 - SUPREME COURT], and in Vinitec Electronics Private Ltd. v. HCL Infosystems Ltd. [2007 (11) TMI 588 - SUPREME COURT] have been gone into - Having given thoughtful consideration to the law laid down by this Court, in respect of grant/refusal of an injunction of an unconditional bank guarantee, and keeping in mind the terms and conditions, more particularly of the contractual conditions extracted and narrated above, we are satisfied that the courts below were not justified in injuncting the invocation of the three bank guarantees, executed by the State Bank of Mysore, at the instance of M/s. RMSFC. The Respondent Nos. 2 and 3 - the State Bank of Mysore is directed to honour the same forthwith. Appeal disposed off.
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