Bank guarantee invocation upheld where no timely extension was sought for re-export obligations and no fraud was alleged.

A bank guarantee furnished for re-export of goods brought back into India was upheld where the guarantee required re-export within six months or within extended time allowed by the competent authority. The petitioner raised no protest when the guarantee was required, made no timely request for extension within the stipulated period, and sought extension only after expiry. In the absence of any allegation of fraud or of invocation contrary to the guarantee terms, interference with invocation was declined.

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Issues: Whether the invocation of the bank guarantee furnished in connection with re-export of goods brought back into India was liable to be interfered with.

Analysis: The petitioner had executed the required bond under the relevant customs notification and later furnished a bank guarantee. The guarantee required re-export of the goods within six months or within such extended time as allowed by the competent authority. No protest was raised at the time the guarantee was required. The record also showed that no request for extension was made within the stipulated period, and the subsequent request was made only after expiry of the guarantee period. There was no allegation of fraud or of invocation being contrary to the terms of the guarantee.

Conclusion: The invocation of the bank guarantee was not interfered with.

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