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High Court of Karnataka Allows Petition to Restrain Encashment of Bank Guarantee in Contract Dispute — No Concluded Contract Found. Court quashes demand letters and directs status quo, holding that without a work order, there is no concluded contract and invocation is arbitrary.

The petitioner, PG Setty Construction Technology Pvt. Ltd., a construction company, filed a writ petition under Articles 226 and 227 of the Constituti...

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Bombay High Court Dismisses Appeal Against Refusal to Injunction Bank Guarantee Invocation in Development Dispute. Court holds that bank guarantee is an independent contract and injunction can only be granted on grounds of fraud or irretrievable injustice, not mere breach of underlying contract.

The appeal arose from a commercial suit where the appellant, Kryshnajay Developers Pvt. Ltd., sought a temporary injunction to restrain the respondent...

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Bombay High Court Restrains Invocation of Performance Guarantee in Arbitration Dispute — Finds Prima Facie Case of Fraud and Irretrievable Injustice. Section 9 of Arbitration and Conciliation Act, 1996 invoked to protect petitioner's interests pending arbitration.

The petitioner, Larsen & Toubro Limited (L&T), filed an arbitration petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking in...

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Supreme Court Allows Creditor’s Appeal Against Direction to Exhaust Remedies Against Principal Before Proceeding Against Surety. Direction Under Order XX Rule 11(1) CPC Set Aside as Contrary to Law on Guarantees and Lacking Specific Reasons.

The appellant, Bank of Bihar Ltd., lent money to the first respondent, Damodar Prasad, on the guarantee of the second respondent. The bank filed a sui...

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Bombay High Court Considers Section 9 Petition Seeking Renewal of Bank Guarantees Pending Section 34 Challenge to Arbitral Award. Liquidated Damages Claim in Public Utility Contract Examined for Prima Facie Case in Light of Saw Pipes and Construction & Design Services Precedents.

The proceedings arose from a contract between Oil and Natural Gas Corporation Limited (ONGC) and Afcons Gunanusa Joint Venture for construction, insta...