Bank guarantee protection during statutory appeal prevents encashment until the merits are considered.

A bank guarantee furnished for release of goods was protected from encashment while the petitioner's statutory appeal remained pending, with the State indicating that the guarantee would be kept intact until the appeal was decided. On those facts, the earlier judgment was recalled and interim protection was granted, directing the authorities not to encash the guarantee until the appeal was considered on merits.

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Issues: Whether the respondent authorities could encash the bank guarantee pending disposal of the petitioner's statutory appeal, and whether the earlier judgment required recall.

Analysis: The petitioner informed the Court that the goods had already been released on furnishing a bank guarantee and that a statutory appeal had since been filed. The State also stated that the guarantee would be kept intact until the appeal was decided. In these circumstances, the earlier judgment was recalled and protection was granted against encashment during the pendency of the appeal.

Conclusion: The respondent authorities were directed not to encash the bank guarantee until the petitioner's statutory appeal is considered on merits.

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