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2020 (10) TMI 592 - NATIONAL COMPANY LAW TRIBUNAL, SPECIAL BENCH, MUMBAI BENCHCIRP Proceedings - invocation of Bank Guarantee - HELD THAT:- The bank guarantees furnished for availing certain services are performance guarantees which could be invoked on the failure of the corporate debtor to perform certain acts. Thus, would fall squarely under the above definition and would be beyond the purview of section 14 of the Code - It is thus clear from the finding that bank guarantees would not come within the restrictions imposed upon by section 14 of the Code. Besides bank guarantees represents an independent contract between the Bank and the beneficiary, both the parties would be bound by the terms thereof. This Authority need not however concern itself with the propriety of the bank guarantees. Nor can the matter of fraud or irretrievable injury can be gone into. The same is not canvassed either. What needs consideration is if a restraint order can be passed within the parameters of the Code, now that the CIRP has commenced. As already indicated and authoritatively decided, bank guarantees would not come within the scope of section 14 of the Code. No order of restraint is thus contemplated. Therefore, the prayer made in the Application does not merit consideration - Application cannot be allowed.
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