Employers under construction contracts often require contractors to furnish security in the form of guarantees or bonds. The UK Court of Appeals, in the Bolivinter Oil v. Chase Manhatton Bank, noted that beneficiary fraud known to the bank is the "wholly exceptional" ground for interfering with the payment. In RD Harbottle Ltd. v. National Westminister Bank Ltd, it was held …
The Chhattisgarh High Court has recently held that the bank can be restrained from enforcement of unconditional and absolute performance bank guarantee by interim injunction only in case of fraud or special equities, to prevent irretrievable injustice. "The Commercial Court has rightly held that the appellants have failed to plead and establish the grounds of "fraud," "special equity," and "irretrievable …
By way of the present column, an attempt is made to briefly review the salutary judgments pronounced by the Courts in the month of September 2020 under the Arbitration & Conciliation Act, 1996. Chaitanya Construction Company v Delhi Jal Board High Court of Delhi took note of the fact that S. 7 of the Act itself provides that the arbitration …