Interim restraint on bank guarantee payment granted, subject to the plaintiff keeping the guarantees alive until the next hearing.

Interim protection was sought against encashment of specified bank guarantees after invocation letters were issued, with the plaintiff stating that no payment had yet been made. The court, while issuing summons and notice, granted an ex parte ad interim restraint preventing defendants from making payment under the bank guarantees until the next date of hearing. That protection was made conditional on the plaintiff taking all necessary steps to keep the guarantees alive, with costs reserved for further orders.

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Issues: Whether an ex parte ad interim injunction should be granted restraining payment under the bank guarantees till the next date of hearing, subject to the plaintiff keeping the guarantees alive.

Analysis: The plaintiff sought interim protection in respect of the invocation of specified bank guarantees. The Court recorded the plaintiff's position that no payment had yet been made pursuant to the invocation letters and considered the pleadings and record for interim relief. While issuing summons and notice, the Court balanced the interim protection sought by directing that defendants No. 2 and 3 shall not make any payment under the bank guarantees till the next date of hearing, on condition that the plaintiff takes all necessary steps to keep the guarantees alive, with related costs left open for further orders.

Conclusion: Interim injunctive relief was granted in favour of the plaintiff, restraining payment under the bank guarantees until the next date of hearing, subject to the plaintiff maintaining the guarantees alive.

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