Bank guarantee secures government against PSIA breaches, payable on demand for losses without contestation or delay. The bank guarantee is an unconditional, irrevocable undertaking to pay the Government up to the prescribed sum on demand for loss or damage caused by the applicant's breach of PSIA obligations or violation of specified Handbook provisions or other law. The bank's liability is absolute and payable without demur or reference to disputes, remains enforceable for the period of PSIA recognition, and is subject to a written claim being made within the specified liability period (four years from recognition). The guarantee is continuing and not revocable without Government consent.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Bank guarantee secures government against PSIA breaches, payable on demand for losses without contestation or delay.
The bank guarantee is an unconditional, irrevocable undertaking to pay the Government up to the prescribed sum on demand for loss or damage caused by the applicant's breach of PSIA obligations or violation of specified Handbook provisions or other law. The bank's liability is absolute and payable without demur or reference to disputes, remains enforceable for the period of PSIA recognition, and is subject to a written claim being made within the specified liability period (four years from recognition). The guarantee is continuing and not revocable without Government consent.
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